In re Mystique Impex Private Limited (CAAR Mumbai)
The Customs Authority for Advance Rulings, Mumbai considered an application filed by M/s Mystique Impex Private Limited seeking classification of the proposed import of raw, shelled cashew kernels split into two pieces lengthwise, commercially known as “cashew splits” or “split kernels”, and determination of the applicability of DGFTNotification No. 59/2015-2020 dated 21.02.2023 prescribing Minimum Import Price (MIP) for specified cashew kernel categories. The applicant proposed to import the goods for wholesale trading and submitted that the kernels separate along their natural longitudinal seam into two substantially symmetrical halves, retaining the recognizable form and characteristics of the original kernel. The principal dispute concerned Tariff Items 0801 32 10, covering “cashew kernel, broken”, 0801 32 20, covering “cashew kernel, whole”, and 0801 32 90, covering “Other”. The applicant contended that split kernels are commercially and physically distinct from broken kernels, which generally comprise irregular fragments, and therefore fall under the residual entry 0801 32 90. It also submitted that the MIP notification, which specifies “cashew kernel, broken” and “cashew kernel, whole”, could not be extended to goods classified under the residual tariff item.
The Authority examined the Customs Tariff structure, General Rules for Interpretation, HSN Explanatory Notes, dictionary meanings, trade understanding and BIS Standard IS: 7750:2013. It noted that “split” ordinarily denotes a clean division along a natural line of cleavage, whereas “broken” generally connotes rupture, damage or irregular fragmentation. The Authority also considered that the Customs Tariff itself contains separate references to “split” and “broken” in other contexts, including split areca nuts under 0802 80 20 and split pigeon peas under 0713 90 10. The BIS standard was noted to recognise whole, butts, splits and broken pieces as distinct cashew kernel categories, with splits identified as kernels split naturally lengthwise.
