In re Soham Impex (CAAR Mumbai)
M/s. Soham Impex recently sought an advance ruling from the Customs Authority for Advance Ruling (CAAR) in Mumbai regarding the classification of various roasted nuts for import purposes. The application, filed on February 24, 2025, aimed to ascertain the correct customs tariff classification and eligibility for notification benefits for roasted cashew nuts, roasted areca nuts, roasted almond nuts, and roasted pista nuts originating from several Asian, American, and Australian countries.
Applicant’s Stance on Classification
Soham Impex contended that all subject goods should be classified under Chapter Heading (CTH) 2008 of the First Schedule of the Customs Tariff Act, 1975, specifically CTH 2008 19 10 for roasted cashew nuts and CTH 2008 19 20 for other roasted nuts. The applicant argued that the roasting process transforms raw nuts into “otherwise prepared or preserved” goods, aligning with the scope of Heading 2008. This heading covers fruits, nuts, and other edible parts of plants that have been prepared or preserved, not elsewhere specified.
For roasted cashew nuts, the applicant cited CTH 2008 19 10, which specifically mentions “Cashew nut, roasted, salted or roasted and salted.” They also sought benefit under Sl. No. 172 of Notification No. 46/2011-Cus.
Regarding roasted areca nuts, Soham Impex detailed the roasting process, emphasizing it’s distinct from simple drying. The process involves de-husking, repeated heating and cooling cycles in an oven over 2-3 days to reduce water content. They asserted that HSN Explanatory Notes to Heading 2008 explicitly include “Dry Roasted Areca (or Betel) Nuts.” The applicant differentiated roasted areca nuts from “Supari” (classified under Chapter 21), highlighting that supari involves extensive processing and additives, whereas roasted areca nuts are merely preserved by roasting.
For both roasted almond nuts and roasted pista nuts, the applicant described a similar roasting process involving oven heating. They proposed classification under CTH 2008 19 20 (“Other roasted nuts and seeds”), arguing that the roasting process prepares or preserves them, thereby placing them within Chapter 20 and not Chapter 08, which primarily covers fresh or dried nuts.
The applicant further supported their classification arguments by referencing General Rules of Interpretation Rule 3(a), which prioritizes a more specific description over a general one. They also invoked judicial precedents, including L.M.L. Ltd. v. Commissioner of Customs [2010 (258) E.L.T 321 (S.C.)], Holostick India Ltd. v. Commissioner of Central Excise, Noida [2015 (318) E.L.T 529], and Collector of Central Excise, Shillong v. Wood Craft Products Ltd [1995 (77) E.L.T 23 (S.C.)], to underscore the importance of HSN Explanatory Notes as a reliable guide for classification. The ruling in Collector of Customs, Bombay v. Business Forms Ltd [2002 (142) .T 18 (S.C.)] was also cited, emphasizing that HSN Explanatory Notes deserve due consideration.
Additionally, the applicant referred to previous CAAR Mumbai rulings (CAAR/MUM/ARC/44, 45 & 46/2022 dated 07.12.2022, upheld by the Madras High Court in 2023 (386) E.L.T. 214 (Mad.)) and subsequent rulings, which classified roasted areca nuts under CTH 2008 19 20.
Jurisdictional Commissionerate Responses
The CAAR solicited comments from various jurisdictional Commissionerates.
Customs Commissionerate, Ludhiana, cited DGFT Notification 02/2025-26 dated 02.04.2025, which amended import policy for roasted areca nuts. This notification stated that “all kinds of processed Areca nuts including Roasted Areca Nuts” fall under ITC (HS) Code 08028090 (Chapter 8), subject to specific CIF value conditions. For roasted cashew, almond, and pistachio nuts, Ludhiana Customs generally agreed they appear to be covered under Heading 2008, subject to product state and processing.
Customs Commissionerate, Tuticorin, largely supported the applicant’s classification for roasted areca nuts, referencing the Madras High Court judgment in Civil Miscellaneous Appeal (CMA) Nos. 600/2023, No. 1206/2023 and No. 1750/2023, dated 01.08.2023. This judgment explicitly held that:
- Roasting is distinct from boiling and drying in classification.
- Roasted betel/areca nut is specifically classified under CTH 2008 19 20, with specific entries prevailing over general ones.
- HSN Explanatory Notes are a reliable guide.
- Common parlance is irrelevant when a specific entry exists.
- Classification should conform to HSN Explanatory Notes.
Tuticorin Customs stated that the CAAR Mumbai had already accepted this Madras High Court ruling and had rejected similar applications on these grounds. Consequently, they suggested the present application regarding roasted areca nuts might not be entertained. They extended this reasoning to roasted almond and pista nuts, arguing that if the roasting process is similar across nut types, the Madras High Court’s principle would apply. For roasted cashew nuts, Tuticorin Customs confirmed their specific classification under CTH 2008 19 10 and eligibility for duty exemption under Notification No. 46/2011-Cus.
Customs Commissionerate, Hyderabad, presented a dissenting view, particularly concerning roasted areca nuts. They argued that “roasting” could be considered “moderate heat treatment” as per Chapter Note 3 of Chapter 8, which allows for additional preservation or stabilization. Hyderabad Customs questioned the applicant’s claims regarding water content reduction, stating a lack of supporting test reports, and suggested a misrepresentation of facts.
They contended that after roasting, the product remains a dried areca nut, classifiable under Chapter 8 (080280). Hyderabad Customs further argued that for a product to be classified under Chapter 20, it must be a “preparation” of nuts, implying a more significant alteration or mixture of substances beyond mere roasting. They cited Chapter Note 1(a) of Chapter 20, which excludes products prepared or preserved by processes specified in Chapter 8. They also pointed out that HSN Explanatory Notes to Heading 2008 often imply packaging in cans, jars, or airtight containers for products of this heading, suggesting a manufactured “preparation,” which they argued was not evident for the roasted areca nuts described by the applicant.
This summary highlights the core arguments and the differing interpretations of customs classification rules and judicial precedents concerning roasted nuts. The CAAR’s final ruling will be crucial in clarifying the import policy for these commodities.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. Soham Impex (IEC No.: 0314028595) (hereinafter referred to as ‘the Applicant’) filed an application (CAAR- 1) for advance ruling in the Office of Secretary, Customs Authority for Advance Ruling (CAAR) Mumbai. The said application was received in the secretariat of the CAAR, Mumbai on 24.02.2025 along with its enclosures in terms of Section 28H(1) of the Customs Act, 1962 (hereinafter referred to as ‘the Act’ also). The Applicant is seeking advance ruling on the issue of classification of the below goods under the First Schedule of the Customs Tariff Act, 1975:
a) Roasted Cashew nuts from Vietnam, Thailand and Malaysia.
b) Roasted Areca nuts from Myanmar, Indonesia, Thailand and Sri Lanka.
c) Roasted Almond nuts from United States of America and Australia.
d) Roasted Pista nuts from Vietnam, Thailand and Malaysia.
2. The applicant is of the bonafide belief that the subject goods are rightly classifiable under 2008 19. Therefore, the present application is filed to ascertain the correct classification and eligibility of Notification benefit for the subject goods:
| S. No | Subject Goods | Proposed CTH Classification | Proposed Eligibility of Notification Benefit |
|---|---|---|---|
| 1 | Roasted Cashew Nut | CTH 200819 10 | (1) SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 |
| Roasted Areca Nut |
CTH 200819 20 | (1) SI. No. 172 of Notification No. 46/2011-Cus dated 01 06 2011 and 2) List 5 of Notification No.26/2000- Cus dated 01.03.2000 (when imported from Sri Lanka) | |
| Roasted Almond Nut | CTH 200819 20 | (1) SI. No.622 of Notification No. 62/2022-Customs dated 26.12.2022 (when imported from Australia) | |
| 4 | Roasted Pista Nut |
CTH 200819 20 | (1) SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 |
Applicant’s interpretation of Law:
3. Roasted Cashew Nuts Imported from Vietnam, Thailand and Malaysia:
3.1 As per the applicant, the applicable subheading for roasted cashew nuts will be CTH 2008 19 10, which provides for
2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included,
– Nuts, ground-nuts and other seeds, whether or not mixed together,
2008 19 – Other, including mixtures:
2008 19 10 – Cashew nut, roasted, salted or roasted and salted
and the Roasted cashew nuts Imported from Vietnam, Thailand and Malaysia are eligible to avail the benefit of SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011.
3.2 The importer submitted that the pr _caption procesV heating, lining the baking sheet,and roasting – transforms the raw cash a fo -that t ption of “otherwise prepared or preserved” nuts. This classification aligns with the heading 2008, which covers fruit, nuts, and other edible parts of plants that have been prepared or preserved, whether or not containing added sugar or sweetening matter or spirit, and are not specified elsewhere. Additionally, the classification under CTH 2008 19 10 is appropriate because roasted cashew nuts are specifically described under this subheading.
3.3 Further, the classification of subject goods under CTH 2008 19 10 can be supported by General Rules of Interpretation Rule 3(a) of the which provides that when one classification provides a general description and another provides a more complete or precise description of the goods, then the classification which provides the precise description must be taken. In this case, the specific heading for roasted cashew nuts is 2008 19 10, which provides a more precise description than a general heading for nuts under Chapter 08.
4. Roasted Areca Nuts to Be Imported from Myanmar, Indonesia, Thailand and Sri Lanka:
4.1 As per the applicant, the process of ‘roasting’ is neither defined in the Customs Tariff nor in the HSN Explanatory/Sections/Chapters Note. It is submitted that the processes carried out on the subject goods as follows:
(1) De-husking the raw betel/areca nuts and drying the same before being fed into the roasting oven;
(2) Feeding the fresh areca nuts into a seed roasting oven, heating up to 100 Degree Celcius and roasting the fresh areca nuts in an oven of the seed roasting machine;
(3) Take the areca nuts out of the oven, cooling at room temperature and feeding back into the oven, heat and roast them again, and perform this cycle until the water content of the fresh areca nuts is 10 to 15 per cent; and
(4) The fresh areca nuts are repeatedly heated, roasted and cooled to ensure that the areca nuts are quickly cooled and shrunk after thermal expansion so that the roasted areca nuts have higher quality; the roasting time is around 2-3 days.
4.2 As per the applicant, the roasted Areca Nuts are specifically covered and are classifiable under CTH 2008 19 20 of the Customs Tariff Act, 1975. As per the HSN Explanatory Notes to Heading 2008, Dry Roasted Areca (or Betel) Nuts are specifically covered under Chapter Heading 2008. Reference is made to the case laws of L.M.L. Ltd. v. Commissioner of Customs reported in 2010 (258) E.L.T 321 (S.C), Holostick India Ltd. v. Commissioner of Central Excise, Noida reported in 2015 (318) E.L.T 529, Collector of Central Excise, Shillong v. Wood Craft Products Ltd reported in 1995 (77) E.L.T 23 (S.C.) to submit that the HSN Explanatory Note is the safe and dependable guide in the matters of classification of items. In the case of Collector of Customs, Bombay v. Business Forms Ltd reported 2002 (142) .T 18 (S.C.), the Hon’ble court held that
Explanatory Notes to HSN need to be given due consideration for classifying goods.
4.3 It is also submitted that Chapter 21 also covers other Betel nut product known as Supari whereas the subject goods are “roasted areca nuts”. As per Supplementary Note 2 to Chapter 21 of the Customs Tariff Act, 1975, “betel nut product known as Supari” means any preparation containing betel nuts, but not containing any one or more of the following ingredients, namely: lime, Kama (catechu) and tobacco whether or not containing any other ingredients, such as cardamom, copra or menthol. As per the Explanatory Note, the heading covers preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk, etc.), for human consumption. As per the applicant, the goods have undergone roasting, but they do not contain lime, Katha (catechu) and tobacco. Further, roasted betel nuts can be consumed directly by merely cutting them into pieces. Therefore, the goods seem equally classifiable under Chapter 21 of the’*toms Tariff Act, 1975. It is made clear that Supari and roasted areca nuts differ significantly in their processing and classification. Supari in general involves extensive processing, such as boiling, drying, and mixing with various additives like sweeteners, spices, and sometimes even silver coating, making it a complex product typically classified under Chapter 21 of the Customs Tariff as a miscellaneous edible preparation. In contrast, roasted areca nuts are simply preserved by roasting, without any additional ingredients or complex processing, which aligns them with Chapter 2008, specifically covering nuts that are otherwise prepared or preserved. Thus, while supari is a more elaborately processed product, roasted areca nuts are simply roasted and preserved, leading to their distinct classifications. Further, Chapter 2008 explicitly includes nuts that are roasting, making it the appropriate and specific classification for roasted areca nuts.
4.4 Further, Chapter 8 covers fruit, nuts and peel of citrus fruit or melons (including watermelons), generally intended for human consumption (whether as presented or after processing). As per HSN explanatory notes these goods may be fresh (including chilled), frozen (whether or not previously cooked by steaming or boiling in water or containing added sweetening matter) or dried (including dehydrated, evaporated or freeze-dried): provided they are unsuitable for immediate consumption in that state, they may be provisionally preserved (e.g., by sulphur dioxide gas, in brine, in Sulphur water or in other preservative solutions). The note specifies the physical status of the goods along with corresponding processes that could be carried on those goods under this chapter. Note 3 to Chapter 8 further states that Dried fruit or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes:
a) for additional preservation or stabilization (for example, by moderate heat treatment, sculpturing, the addition of sorbic acid or potassium sorbate);
b) to improve or maintain their appearance (for example, by the addition of vegetable oil or small quantities of glucose syrup), provided that they retain the character of dried fruit or dried nuts.
4.5 The areca/betel nut is mentioned in Heading 0802, specifically under sub- heading 080280. The explanatory note to Heading 0802 states that this heading also covers areca (betel) nuts used chiefly as a masticatory. One of the main uses of the goods under consideration is masticatory. Therefore, the subject goods satisfy this note. However, the process of roasting is not finding mention anywhere in this Explanatory Note.
4.6 The processes mentioned in Chapter 8 include chilling, steaming, boiling, drying and provisionally preserving. It does not specifically include the process of roasting. Here it is important to understand the difference between the processes of drying and roasting. The terms, however, are not defined in the Customs Tariff Act, 1975. Therefore, these terms have to be understood in a commonly accepted sense. The Hon’ble Apex Court in the case of Alladi Venkateswarlu v. Government of Andhra Pradesh reported 1978 AIR 945 held that “the commonly accepted sense of a term should prevail in construing the description of an article of food”. In common trade parlance, “drying” is a method of food preservation by the removal of water. On the other hand, “roasting” means the excess or very high heat treatment that produces fundamental chemical and physical changes in the structure and composition of the goods, bringing about a charred physical appearance. Therefore, drying is a moisture removal process involving methods such as dehydration, evaporation, etc., whereas roasting is a severe heat treatment process.
4.7 The following CTH can be found to be specifically mentioned in the Tariff: –
2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included,
– Nuts, ground-nuts and other seed––
2008 19 –-Other. including mixtures.
2008 19 20 — Other roasted nuts and seeds
While examining the scope of CTH 2008 it is found that as per HSN Explanatory Notes, heading 2008 covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters or in the preceding headings of this Chapter. Specifying what is included in this heading, the explanatory note states that Almonds, ground nuts, areca (or betel) nuts and other nuts, dry-roasted, oil-roasted or fat-roasted, whether or not containing or coated with vegetable oil, salt, flavors, spices or other additives. From the forgoing it can be seen that the subject goods find specific reference in the chapter 20 of the schedule I of the Customs Tariff Act, 1975 as well as corresponding HSN Explanatory Note. It is important to pay attention to the fact that in the above explanatory note a process of roasting is not specifically mentioned as a process of preservation or stabilization or a process to improve or maintain the appearance.
4.8 The applicant submits that on various online marketplaces like https://www.amazon.in/, https://indiamart.com, https://flipkart.com etc. roasted betel nuts as products are sold. This clearly indicates that the goods have both buyers and sellers and that they are known in the trade and sold in the market as roasted betel nuts. Therefore, assuming without admitting, even if the term is not defined in the statute, the product has to be understood and recognized in terms of common trade parlance. It is a well-settled principle that words in a taxing statute must be construed in consonance with their commonly accepted meaning in the trade and their popular meaning. Hon’ble Apex Court in the matter of MIs. United Offset Process Pvt. Ltd. v. Asstt. Collector of Customs, Bombay and Others reported in 1988 (38) ELT 568 (SC), “If there is no meaning attributed to the expressions used in the particular enacted statute then the items in the customs entries should be judged and analysed on the basis of how these expressions are used in the trade or industry or in the market or, in other words, how these are dealt with by the people who deal in them, provided that there is a market for these types of goods”.
4.9. Chapter 20 covers the preparation of nuts. One of the processes for preparing the impugned goods is specified in Heading 2008, i.e. roasting. Roasting is the essential process for the preparation of subject goods. The subject goods under consideration are not excluded by any chapter note or explanatory note from Heading 2008.
4.10. The applicant submitted that for identical products namely Roasted Areca Nuts, the Hon’ble Authority, Mumbai, vide Ruling Nos. CAAR/MUM/ARC/44, 45 & 46/2022 dated 07.12.2022 which has also been upheld by the Hon’ble High Court of Madras as reported in 2023 (386) E.L.T. 214 (Mad.), vide Ruling Nos. CAAR/Mum/ARC/39,40,41/2023 dated 12.05.2023 and vide Ruling No. CAAR/MUM/ARC/67/2022 dated 16.10.2023 had held that the product is classifiable under CTH 2008 19 20. The said ruling is applicable to the present case also, as the Roasted Areca Nuts are same as the product that was under consideration before the Hon’ble Authority in the above-mentioned Rulings.
5 Roasted Almond Nuts Imported from United States and Australia:
5.1 The applicant submits that the process carried out on the imported goods includes the following steps: Preheat the oven to 350 degrees, line a rimmed baking sheet with parchment paper or foil for easy cleanup, add almonds in a single layer, and roast for 10-15 minutes.
5.2 As per the applicant, the applicable subheading for roasted almond nuts will be CTH 2008 19 20, which provides for:
2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included,
– Nuts, ground-nuts and other seeds, whether or not mixed together,
2008 19 — Other, including mixtures:
2008 19 20 — Other roasted nuts and seeds.
and Roasted Almond nuts imported from Australia are eligible to avail the benefit of SI. No. 622 of Notification No. 62/2022-Customs dated 26.12.2022.
5.3 As per the applicant the preparation process being preheating, lining the baking sheet, and roasting – transforms the raw almonds into a form that fits the description of “otherwise prepared or preserved” nuts. This classification aligns with the heading 2008, which covers fruit, nuts, and other edible parts of plants that have been prepared or preserved, whether or not containing added sugar or sweetening matter or spirit, and are not specified elsewhere. Additionally, the classification under CTH 2008 19 20 is appropriate because other roasted nuts are specifically covered under this subheading.
5.4 The applicant submitted that Chapter 08 of the Custom Tariff also deals with the Edible fruit and nuts which are “fresh” or “dried” in general. It is submitted that the products subjected to import are “roasted” which are clearly not fresh or dried. Therefore, the classification of subject goods under the Chapter 08 is not suitable for the product which is roasted.
6. Roasted Pista Nuts Imported from Vietnam, Thailand and Malaysia:
6.1 The applicant submits that the process carried out on the imported goods includes the following steps: Preheat the oven to 350 degrees, line a rimmed baking sheet with parchment paper or foil for easy clean-up, add pista nuts in a single layer, and roast for 10-15 minutes.
6.2 As per the applicant, the applicable subheading for roasted pista nuts will be CTH 2008 19 20, which provides for:
2008 -Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included,
– Nuts, ground-nuts and other seeds, whether or not mixed together,
2008 19 – Other, including mixtures:
2008 19 20 — Other roasted nuts and seeds.
This subheading includes “Other roasted nuts and seeds,” which includes the impugned roasted pista nuts. Roasted pista nuts imported from Vietnam, Thailand and Malaysia is eligible to avail the benefit of SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011.
6.3 The applicant submitted that the preparation process being preheating, lining the baking sheet, and roasting – transforms the raw pista into a form that fits the description of “otherwise prepared or preserved” nuts. This classification aligns with the heading 2008, which covers fruit, nuts, and other edible parts of plants that have been prepared or preserved, whether or not containing added sugar or sweetening matter or spirit, and are not specified elsewhere. Additionally, the classification under CTH 2008 19 20 is appropriate because other roasted nuts are specifically covered under this subheading.
6.4. The applicant further submitted that Chapter 08 of the Custom Tariff also deals with the Edible fruit and nuts are “roasted” which are clearly not fresh or dried. Therefore, the classification of subject goods under the Chapter 08 is not suitable for the product which is roasted.
6.5. Further, the classification of subject goods under CTH 2008 1920 can be supported by General Rules of Interpretation Rule 3(a) of the which provides that when one classification provides a general description and another provides a more complete or precise description of the goods, then the classification which provides the precise description must be taken. In this case, the specific heading for other roasted nuts is 2008 19 20, which provides a more precise description than a general heading for nuts under Chapter 08.
7. Port of Import and reply from jurisdictional Commissionerate: The applicant is intending to import the subject goods from the Ports/ICDs under the jurisdictional Commissionerates of Chennai-II (Import) Commissionerate, Customs Commissionerate Mundra, Customs Commissionerate Tuticorin, Customs Commissionerate Ludhiana, Customs Commissionerate Kolkata (Port —Import) and Customs Commissionerate Hyderabad. In this regard, the comments received from the jurisdictional Commissionerates are as below:
7.1 Comments from the Customs Commissionerate, Ludhiana: With reference to the classification of roasted areca nuts, reference is invited to the DGFT Notification 02/2025-26 dated 02.04.2025 regarding Amendment in import policy and policy conditions of Roasted Areca Nuts falling under ITC (HS) Code 20081920 of Chapter-20 of ITC (HS), 2022, Schedule-I (Import Policy)-reg. As per the ibid notification, roasted nuts must be classified under Chapter 8 under HS Code 08028090 covering all kinds of processed areca nuts including roasted areca nuts subject to the policy condition as laid down in the DGFT notification, the relevant part of the notification is reiterated as under:
| ITC (HS) Codes | Description | Policy | Policy Condition |
|---|---|---|---|
| 08028090 | Areca Nut- Other | Prohibited | (a) However, import is free if CIF value is Rs. 351/- and above per Kilogram
(b) MIT conditions, however, will not be applicable for imports by 100% Export Oriented Units (EOUs), units in the SEZ and imports under Advance Authorisation Scheme. (c) This code also covers all kinds of processed Areca nuts including Roasted Areca Nuts. |
In respect of the roasted cashew, almond, and pistachio nuts, it appears that, they are covered under heading 2008. Further, the classification depends upon the state of the product, processes/treatment, the product has gone through, purpose of such processes/treatment (whether for preservation, stabilisation, improvement of appearance, etc.), ingredients used in the product (in case of preparations), etc. The claim of the applicant with respect to the seeking claim of exemption notification for COO benefits is subject to country-of-origin compliance.
7.2 Comments from the Customs Commissionerate, Tuticorin: In this regard, comments from the Tuticorin Customs are furnished as under:
7.2.1.Roasted Areca Nuts to Be Imported from Myanmar, Indonesia, Thailand and Sri Lanka: In the matter of the classification of the roasted Areca Nuts, the issue has already been decided by the Hon’ble High Court of Madras in its recent judgement on Civil Miscellaneous Appeal (CMA) No’s 600/2023, No. 1206/2023 and No. 1750/2023, dated 01.08.2023. The Hon’ble High Court went on to analyse the various aspects in determining classificatio.a,,and,summed.up that:
(a) Roasting is a process treated to be distinct from the process of boiling and drying, in fixing the classification in respect of betel/areca nut under CTH.
(b) Roasted betel/areca nut having been specifically classified under CTH 2008 19 20, the attempt to classify under CTH 08 02 80 would fall foul of the settled rule of classification that specific entry would prevail over general entry.
(c) HSN Explanatory Notes are normally a safe guide in determining classification under CTH. Roasted areca I betel nut having been mentioned in CTH 2008 19 20 under HSN.
(d) When there is a specific entry covering a product/commodity, the test of common parlance is irrelevant in determining classification.
(e) There is considerable force in the submission that the classification as far as possible must be in conformity and in consonance with the HSN Explanatory Notes.
The above judgement of the Hon’ble High Court of Madras has been accepted by the CAAR, Mumbai also and the application filed by M/s. ATM Exports and Imports was rejected on the same grounds vide Order No. CAAR/Mum/ARC14,5/2025-26 dated 11.04.2025. In view of the forgoing and in exercise of the powers vested in section 28- I of Customs Act 1962, the CAAR may not entertain the application to that extent since the CAAR has ruled that the issue has already been decided by the Hon’ble High Court of Madras.
7.2.2 Roasted Almond Nuts Imported from United States and Australia and Roasted Pista Nuts Imported from Vietnam, Thailand and Malaysia: The processing of both ROASTED ALMOND NUTS and ROASTED PISTA NUTS is similar to the processing of ROASTED ARECA NUTS. As per the applicant, the process of ‘roasting’ is neither defined in the Customs Tariff nor in the HSN Explanatory/Sections/Chapters Note. It is submitted that the processes carried out on the ARECA NUTS as follows:
1. De-husking the raw betel/areca nuts and drying the same before being fed into the roasting oven;
2. Feeding the fresh areca nuts into a seed roasting oven, heating up to 100 deg. C and roasting the fresh areca nuts in an oven of the seed roasting machine;
Similarly, As per the applicant, the process carried out on the ALMONDS is the following:
Preheat the oven to 350 degrees, line a rimmed baking sheet with parchment paper or foil for easy clean-up, add almonds in a single layer, and roast for 10-15 minutes.
As per the applicant, the process carried out on the PISTA NUTS is the same as above. Preheat the oven to 350 degrees, line a rimmed baking sheet with parchment paper or foil for easy clean-up, add Pista Nuts in a single layer, and roast for 10-15 minutes.
If the process of roasting is to be one and the same for the various types of nuts for which the ruling is sought then there is no requirement as such since the issue has already been decided by the Hon’ble High Court of Madras as mentioned by the CAAR, Mumbai in the Order No. CAAR/Mum/ARC/4,5/2025-26 dated 11.04.2025 in case of M/s. ATM Exports and Imports.
In view of the above para and foregoing comments, the CAAR may not entertain the application considering that the matter has already been decided by the Hon’ble High Court of Madras.
7.2.3. Roasted Cashew Nuts Imported from Vietnam, Thailand and Malaysia: Roasted cashew nuts are specifically covered under the specific entry CTI 20081910 — Cashew nut, roasted, salted or roasted and salted. Cashew nut kernels are covered uniie,–k TI 080132, when they are /aren’t the specific entry CTI 20081910. Goods classifiable under CTH 200710 to 200820 are eligible for the benefit of duty exemption under Sl.No.172 of the Notification No. 46/2011-Cus dated 01.06.2011 as amended.
7.3. Comments from the Customs Commissionerate, Hyderabad: The question in the application is “Whether Goods being “Roasted Areca Nuts(Whole), Roasted Areca Nuts (Split) & Roasted Areca Nut (Cut)” imported by the applicant from Countries- Burma (Myanmar), Indonesia, Thailand and Sri Lanka is classifiable under Chapter Sub-Heading 20081920 of the first schedule to the Customs Tariff Act, 1975?’
A. Roasting as a process appears to fall under ‘moderate heat treatment’ mentioned in Chapter Note 3 of Chapter 8, which is reproduced below-
“3. Dried fruits and dried nuts of this Chapter may be partially rehydrated, or treated for the following purpose:
a. for additional preservation or stabilization for example, by moderate heat treatment, sulphuring, the addition of sorbic acid or potassium sorbate);
b. to improve or maintain their appearance (for example, by the addition of vegetable oil or small quantities of glucose syrup), provided that they retain the character of dried fruit or dried nut.”
B. Further, applicant’s claim that fresh areca nuts are repeatedly heated, roasted and cooled to ensure that the areca nuts are quickly cooled and shrunk after thermal expansion so that the roasted areca nuts have higher quality, the roasting time is around 2-3 days. After repeated roasting of the areca nuts at the high temperature in a roasting oven due to which the water content is reduced to below 10-15% appears to be a complete misrepresentation of facts. The applicant has claimed that after roasting water content comes down to 10-15%. Therefore, there does not seem to be a much difference between the roasted and raw areca nuts in terms of temperature. Applicant did not provide any test report before the Advance Ruling Authority. Hence, it appears that the applicant did not provide the complete process before the CAAR and have misrepresented the facts. The applicant states that processes mentioned in Chapter 8 are different from the processes performed on impugned goods. Since the claimed process by the applicant is devoid of any test report and roasting is well inclusive in heat treatment mentioned in Chapter Note No.3 of Chapter 8 of Customs Tariff, the applicant’s contention does not hold any water. After roasting, the end product remains dried areca nut, which is well defined in Chapter 8 up to 6-digit level i.e. 080280.
C. Further, under Chapter 8 of Customs Tariff, areca nuts, whole, split, ground and one residuary sub heading are accommodated under 08028010, 20, 30 and 90 respectively.
D. In the process flow to make roasted areca nut, one set of process are found to be intended for cleaning, the second set for heating and roasting These processes appear to be covered by the Chapter Note 3 to Chapter 8 (supra). In the instant case, areca nuts after being roasted are cooled and this fact per se would not exclude the end-products from the scope of “dried nut”.
E. Further, it is equally obvious that roasting or mere addition of certain additives for the limited purpose of enhancing preservation or appearance or ease of consumption per se does not result in obtaining a preparation of areca nut. Therefore, the process to which raw areca nuts have been subjected as per process flow submitted by the applicant is squarely in the nature of processes referred to in the Chapter Note 3 to Chapter 8 and HSN Notes. Hence at the end of the said processes, the areca nuts retain the character of areca nirt and clo not qualify to be considered as “preparations” of areca nut, which is sine qua non for the goods to be classifiable under Chapter 20.
F. To be classified under Chapter 20 there should be some preparation as the Chapter Heading reads as “Preparations of vegetables, fruit, nuts or other parts of plants”, mere roasting of areca nut does not render the product to be distinctive as claimed by the applicant or does not alter the character of the original good. Hence, it remains the areca nut and is rightly classifiable under Chapter 08. According to Cambridge Dictionary, Preparation is a mixture of substances, often for use as a medicine”. According to Collins Dictionary ‘A preparation is a mixture that has been prepared for use as food, medicine, or a cosmetic.” However, in the process flow, it is evident that there is neither any mixture of products nor any change in the original good which tantamount to no preparation. Hence, the impugned goods rightly classified under Chapter 080280.
G. The applicant has claimed that dry Roasted Areca Nuts are specifically covered under Chapter Heading 2008. The relevant portion of the chapter heading 2008 is reproduced below:
CTH 2008: Fruits, nuts and other edible parts of plants, otherwise prepared or preserved; whether or not containing added sugar or other sweetening matter or split, not elsewhere specified or included
-Nuts, ground nuts and other seeds, whether or not mixed together:
200819 –Other, including mixtures
20081920 —other roasted nut and seeds
This is another misrepresentation of facts since the Chapter 20 cannot and does not cover any nuts or fruits prepared or preserved by the processes specified under Chapter 8 as per the Chapter Note 1 of the Chapter 20 and the chapter note 3 of Chapter 8 includes roasting under ‘moderate heat treatment’, hence the impugned goods cannot be classified under Chapter 20. The said chapter note is reproduced below:
“1. This chapter does not cover:
a. Vegetables, fruit or nuts, prepared or preserved by the processes specified in Chapter 7, Chapter 8, or Chapter 11;
b. Vegetable fats and oils (chapter 15);
c. Food preparations containing more than 20% by weight of sausage, meat, meat offal, blood, insects, fish or crustaceans, molluscs or other aquatic invertebrates, or any combination thereof (chapter 16)
d. Bakers’ wares and other products of heading 1905;
e. Homogenized composite food preparations of heading 2104.”
H. Classification under chapter 20 is sought to be justified on the grounds that the HSN explanatory notes to heading 2008 provide for inclusion of areca nuts in chapter 2008. However, the explanatory notes also clearly specify that “the packing of products of this heading are generally put up in cans. jars or airtight containers, or in casks, barrels or similar containers”. This clause of the HSN explanatory notes clearly implies that the goods of this heading are preparations of fruits or nuts presented in packaged condition after manufacturing, which need to be specifically stored and preserved before consumption. For example, roasted almonds or ground nuts need separate packings as specified by the HSN explanatory notes, otherwise these products are prone to deterioration after roasting. But the processes said to be performed–on the areca nutS–i§ only for the purpose of drying without any reference to packaging and any specific manufacturing process. The importers have not submitted anything about the packaging of the goods and generally these goods are imported in bulk in jumbo bags. The goods under dispute are Areca Nuts in the same form as those classified under Chapter 08 and hence, they are clearly excluded from the scope of the Chapter Heading 2008. Hence, the purported roasted areca nuts clearly excluded from the scope of the chapter 20 and rightly classifiable under chapter 08.
Further, as per Rule 3(a) of General Rules for the Interpretation of the Harmonized System since the product is more specifically classified under CTH 08020 classification under Chapter 2008 or 2106 is unwarranted. When by application of Rule 2 (b) or for any other reason, goods are, prima facie, classifiable under two or more headings,
classification shall be effected as follows: The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods
I. The heading which provides the most The heading which provides the most specific description shall be preferred to headings providing a more general description. Holeyer, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equip)? specific in relation to those goods, even if one of t}tern gives a more complete or precise description of the goods description shall be preferred to headings providing a more general description. Holeyer, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equip)? specific in relation to those goods, even if one of t}tern gives a more complete or precise description of the goods
I. The Chapter Note I of Chapter 20 says that this chapter does not cover: vegetables, fruit or nuts, prepared or preserved by the processes specified in chapter 7, chapter 8, or chapter 11. Chapter 20 heading reads “preparations of vegetables, fruit, nus or other parts of plants”. It is pertinent to mention that the Chapters are organised as per evolution, which is evident by the fact that the edible nuts and fruits are classified under Chapter 8, preparations of vegetables, fruits, nuts or other parts of plants under Chapter 20 and miscellaneous edible preparations under Chapter 21. Hence, the roasted betel nut which did not undergo any preparation is rightly classifiable under Chapter 8.
J. The CESTAT judgement in case of M/s. S.T. Enterprises vs Commissioner of Customs (V11) in Customs Appeal No.40002 & 40003 of 2021 is applicable mutatis mutandis to the present case, wherein the question decided in the said case was classification of “boiled betel nuts”. The importers submission is that the process roasting is not covered under the process mentioned under Chapter Note 3 of Chapter 8. It is pertinent to mention here that the process of boiling is also not mentioned in the Chapter Note 3 to Chapter 8 and the Tribunal has held that the goods under dispute “boiled areca nuts” merit classification under CTH 08028010, which was affirmed by the Hon’ble Supreme Court vide judgment dated 19.03.2021 in Civil Appeal Nos. 850-851 of 2021. Though the process dealt with by the Hon’ble Tribunal was not exactly the same, the principle involved holds relevance. When the boiled supari can be classified under Chapter 08 on the grounds that boiling does not alter the original characteristics of the goods, the same would apply in the present case also as roasting alone would not alter the character of the goods and therefore, roasted areca nut should be classified under Chapter 08 even on this principle also.
K. Several advance ruling applications are filed for betel nut to avoid classification under Chapter 08 as there is a Minimum Import Price as well as a tariff rate which is regularly revised by CBIC. It is pertinent to mention that the revision of tariff value is on a continuous upward trend and as on date the tariff value of the Areca nuts is USD 7765 Per Metric Ton. These applications are being submitted to circumvent the minimum import price and increasing tariff values by legalizing betel nut import through mis- declaration –and mis-classification. The CAAR may not entertain such applications- considering that several advance rulings have already rejected the classification of betel nut under chapter 20 and 21 in the interest of the local areca nut farmers and to safeguard the interest of the revenue.
L. In this regard, it is submitted that as per Chapter Note 3 of Chapter 8 as long as the goods retain the character of dried nut, they remained classified under CTH 080280. Since the Areca nut which has undergone the processes wherein it does not lose its original character i.e. in raw form, the item areca nut shall be covered under CTH 080280.
M. As per Explanatory Notes of CTH 2008, The Heading 2008 includes, inter alict: ground-nuts, areca (or betel) nuts and other nuts, dry-roasted, oil roasted or fat-roasted, whether or not containing or coated with vegetable oil, salt, flavors, spices or other additives.
N. As per Explanatory Notes of Chapter 8, The Chapter excludes “Roasted fruit and nuts (e.g., chestnuts, almonds and figs), whether or not ground, generally used as coffee substitutes.”
O. As per General Rules of Interpretation Rule 3(a) – The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
P. Appropriate CTH for Roasted Cashew Nuts appears to be 2008 1910 as the said goods are specifically covered under the description of CTH 2008 1910 i.e. “Cashew nut, roasted, salted or roasted and salted” as per General Rules of Interpretation Rule 3(a), Explanatory Notes of CTH 2008 – inclusions & Explanatory Notes of Chapter 8 – exclusions.
Q. Appropriate CTH for Roasted Almonds Nuts appears to be 2008 1920 as the said goods are specifically covered under the description of CTH 2008 1920 i.e. “Other roasted nuts and seeds” as per General Rules of Interpretation Rule 3(a), Explanatory Notes of CTH 2008 inclusions & Explanatory Notes of Chapter 8 – exclusions.
R. Appropriate CTH for Roasted Pista Nuts appears to be 2008 1920 as the said goods are specifically covered under the description of CTH 2008 1920 i.e. “Other roasted nuts and seeds” as per General Rules of Interpretation Rule 3(a), Explanatory Notes of CTH 2008 inclusions & Explanatory Notes of Chapter 8 – exclusions.
7..4 The applications were forwarded to the Offices of the Commissioner of Customs, Chennai-II (Import), Chennai, the Commissioner of Customs, Mundra and the Commissioner of Customs, Port-Import, Kolkata for their respective comments. However, no response or comments has been received till date.
8. Records of Personal Hearing: In the instant case a personal hearing was granted to the applicant on 16.06.2025. Nobody appeared for the personal hearing in the matter. However, the applicant, vide email dt 13.06.2025 has communicated that the classification issues are already settled and corresponding Orders/rulings are available in public domain. They also communicated that they do not want to be heard in person and the matter be decided on the basis of merit of the case.
9. Discussions and Findings:
9.1 I have taken into consideration all the materials placed before me in respect of the subject goods. I have gone through the submission made by the applicant and have also gone through the responses received from the Jurisdictional Commissionerates. Therefore, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework.
9.2. The Applicant has sought advance ruling in respect of the following question:
1. Whether the Roasted Cashew Nuts is classifiable under CTI 200819 10 and SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011is applicable or not?
2. Whether Roasted Areca Nut is classifiable under CTI 200819 20 and SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 and List 5 of Notification No.26/2000-Cus dated 01.03.2000 (when imported from Sri Lanka) is applicable or not?
3. Whether Roasted Almond Nut is classifiable under CTI 200819 20 and SI. No.622 of Notification No. 62/2022-Customs dated 26.12.2022 (when imported from Australia) is applicable or not?
4. Whether Roasted Pista Nut is classifiable under CTI 200819 20 and SI. No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 is applicable or not?
9.3. At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962 being a matter related to classification of goods and interpretation of exemption notification under the provisions of this Act.
9.4. Now, I proceed to examine the classification of the parts of Roasted Areca Nut, Roasted Cashew Nuts, Roasted Almond Nut and Roasted Pista Nut. The classification of each of these components shall be examined, taking into account the relevant provisions of the Section Notes, HSN Explanatory Notes, relevant judgements and relevant Rules and notifications:
9.4.1. Roasted Areca Nut: As far as the classification of roasted areca nuts is concerned, it is pertinent to note that the Hon’ble High Court of Madras in a very relevant judgement dated 01.08.2023 in the Civil Miscellaneous Appeal (CMA) Nos 600/2023, No. 1206/2023 and No: 1750/2023, in the matter of the Commissioner of Customs, Chennai-II Commissionerate Vs M/s Shahnaz Commodities International P. Ltd. M/s. Neena Enterprises and M/s Universal Impex, upheld the rulings passed by this authority by approving the classification of Roasted Betel Nuts/Areca Nuts under CTI 20081920.
The Hon’ble High Court went on to analyse the various aspects in determining classification and summed up that:
(a) Roasting is a process treated to be distinct from the process of holing and drying, in fixing the classification in respect of betel/areca nut under CTH.
(b) Roasted betel/areca nut having been specifically classified under CTH 20081920, the attempt to classily under CH 080280 would fall foul of the settled rule of classification that specific entry would prevail over general entry.
(c) HSN Explanatory Notes are normally a safe guide in determining classification under CTH Roasted areca / betel nut having been mentioned in CTH 20081920 under HSN.
(d) When there is a specific entry covering a product/commodity, the text of common parlance is irrelevant in determining classification.
(e) There is considerable force in the submission that the classification as far as possible must be in conformity and in consonance with the HSN Explanatory Notes.
The applicant, vide email dated 13.06.2025, has submitted that the matter of classification of roasted areca nut has already been decided in the referred judgement passed by Hon’ble Madras high court vide its order dated 01.08.2023 in the matter of The Commissioner of Customs, Chennai-II Commissionerate Vs M/s Shahnaz Commodities International P. Ltd. cited supra. However, it is pertinent to underline that in the case of M/s Universal Impex vide ruling no. CAAR/Mum/ARC/39,40,41/2023 dated 12.05.2023, the authority held as following:
“4.17 I have perused a test report issued by ABC Techno Labs India Pvt. Ltd, Chennai dated 31.03.2023 on the samples of roasted areca nut whole & split in which the test result indicates the moisture content, a test parameter, of the samples in the range of 3.34% to 3.84%. Moisture content in raw areca nut is found to be generally in the range on 10-15%.”
Further, the Hon’ble High Court of Madras in the case of M/s Universal Impex Vs. The commissioner of Customs, Chennai in WP Nos. 23836 & 24237 of 2024 and WMP Nos. 26088, 26089, 26481 to 26484 of 2024, vide order dated 22.11.2024 observed and held as follows:
“28. That apart, as contended by the petitioners, both the areca nuts (raw areca nuts and roasted areca nuts) are not prohibited goods and the same can be imported For the importation of raw areca nuts, the minimum price fixed is a sum of Rs. 351/- per kg, whereas, no such minimum price was fixed for the roasted areca nuts. Under these circumstances, as per the parameters fixed by the Advance Ruling Authorities, if the moisture content is between 10% and 15%, the same would he considered as “raw areca nut” and anything below the said category would be considered as “roasted areca nut” … …”
In the instant matter, the applicant itself has claimed that the water content in the said goods i.e. “roasted areca nuts” is 10-15%. As per the ratio of the judgment passed by the Hon’ble High Court of Madras in WP Nos. 23836 & 24237 of 2024 and WIMP Nos. 26088, 26089, 26481 to 26484 of 2024, vide order dated 22.11.2024, the subject goods will appropriately fall under the fresh and dried nut category covered under the broader Heading CTH 0802 which covers “Other nuts, fresh or dried, whether or not shelled or peeled”.
Further, since the subject Areca Nuts contain 10-15% water content as claimed by the applicant itself, it deviates from the observations made by the Hon’ble High Court of Madras in respect of moisture content in the Roasted Areca Nuts in the case of M/s Universal Impex Vs. The commissioner of Customs, Chennai in WP Nos. 23836 & 24237 of 2024 and WMP Nos. 26088, 26089, 26481 to 26484 of 2024, vide order dated 22.11.2024 wherein the Hon’ble High Court of Madras categorically observed that “if the moisture content is between 10% and 15%, the same would he considered as “raw areca nut” and anything below the said category would be considered as “roasted areca nut”……. Therefore, I observe that the subject goods do not meet the criteria set by the Hon’ble High Court of Madras in above referred offer and therefore, do not merit classification as Roasted Areca Nuts.
I further observe that there are a number of test reports pertaining to the Roasted Areca Nuts in which water content is less than 5% which is much below the applicant’s claim of 10-15%. Hence, the contention of the applicant in regards to severe heat treatment / roasting does not hold water. Further, FSSAI has mandated 100% sampling and testing of imported betel/areca nut consignments due to the risk of fungal growth vide F. No. 1-1600/FSSAI/Imports/2016 (Part 18) dated 20.11.2018. Further standards of Areca Nuts are prescribed under Sub-regulation 2.3.55 of Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 which limits the presence of moisture in the Areca Nuts to a maximum of 7%, which is also quite lower than the applicant’s claim of 10-15% water content.
Accordingly, I rule out the claim of the applicant contending that the said goods are “Roasted Areca Nuts”. Accordingly, keeping in view the Judgment of Hon’ble High Court of Madras in WP Nos. 23836 & 24237 of 2024 and WMP Nos. 26088, 26089, 26481 to 26484 of 2024, vide order dated 22.11.2024, I am of the view that the subject goods merits classification under CTH 0802 only, which covers “Other nuts, fresh or dried, whether or not shelled or peeled” since the applicant itself has claimed that the subject goods have moisture content of 10-15%. Accordingly, considering the arrangement of tariff classification and in terms of General Rules of Interpretation (GIR) 1 and 3(a), I find that product merits classification under CTH 0802 and more specifically under CTI 08028010 (–Whole), 08028020 (–Split), 08028030 (–Ground) and 08028090 (–Other).
Needless to say, that at the time of importation of subject goods, the Customs may duly examine the goods to verify the genuineness of the claim of the applicant through proper testing to ascertain the nature of the goods on actual basis. Further, I find it pertinent to mention here that DGFT vide Public Notification No. 02/2025-26 dated 02.04.2025 have amended the import policy of Roasted Areca Nuts and have revised it from “Free” to “Prohibited” and have subject it to MIP (Minimum Import Price) conditions i.e. import shall be free if CIF Value is Rs. 351/- or above per Kilogram for Roasted Areca Nuts falling under ITC (HS) Code 08028090 and 20081920 (now 20081991).
9.4.2. Roasted Cashew Nuts, Roasted Almond Nuts and Roasted Pista Nuts: As far as the classification sought for roasted Cashew Nuts, roasted Almond nuts and roasted Pista Nuts (hereinafter referred to as the subject goods collectively) are concerned, it is observed from the open-sources information that there are certain processes which are undertaken to get the subject goods from the raw ones and that there are considerable differences between the roasted Cashew nuts, roasted Almond nuts and roasted Pista nuts and that of the Raw Cashew nuts, Raw Almond nuts and Raw Pista nuts. Roasting and drying are not one and same processes and there is a sharp change in the moisture level, colour, appearance and flavour when the process of roasting is undertaken. Needless to say, that in the market and trade also, roasted Cashew nuts, roasted Almond nuts and roasted Pista nuts are well-known products and in common parlance it is called/sold/purchased and understood accordingly as roasted, itself. The Customs Tariff Act, nowhere defines the process of roasting. However, CTI 2008 1910 specifically covers roasted cashew nuts.
Further, it can be seen from the processes specified in Chapters 7, 8 or 11 which mainly include freezing, steaming, boiling, drying, provisionally preserving and milling, thus, any vegetable, fruit, nuts or edible parts of a plant which is prepared or preserved by any “other process” than these are liable to be classified under Chapter-20. Heading 2008 covers fruit, nuts and other edible parts of plants. otherwise, prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included. Roasting is a process used for bringing in to existence roasted nuts and the processes mentioned in chapter 8 do not cover roasting process. Further, relevant portion of the Heading 2008 (as amended vide Finance Bill, 2025) is reproduced as under for ready reference:
2008 Fruit, Nuts and other edible parts of plants, otherwise prepared or preserve(i whether or not containing added sugar or other sweeter ling matter or spirit, not elsewhere specify specified or included
Nuts, ground-nuts and other seeds, whether or not mixed together :
| 200811 | Ground-nuts |
| 2008 19 | -Other, including mixtures: |
| 2008 19 10 | -Cashew nut, roasted, salted or roasted and salted |
| -Makhana; | |
| 2008 19 21 | – Popped |
| 2008 19 22 | – Flour and powder |
| 2008 19 29 | -Other |
| -Other | |
| 2008 19 91 | -Other Roasted Nuts Seed |
| 2008 19 92 | -Other Nuts, otherwise prepared or preserved |
| 2008 19 93 | -Other roasted and fired vegetable products |
| 2008 19 99 | -other |
| 2008 20 00 | -Pineapples |
| 2008 30 | -Citrus fruit: |
| 200830 IO | -Orange |
| 2008 30 90 | -Other |
It can be seen from the above Tariff arrangement that the goods i.e., cashew nuts, roasted, salted or roasted and salted has specific entry in the Customs Tariff as CTI 2008 1910. Further, in the case of Commissioner of Central Excise v. Wockhardt Life Sciences Ltd. (2012 (277) E.L.T. 299 (S. C.)), it was held that “Classification of Goods-Determination of it cannot be under residuary entry in presence of speck entry, even if it requires product to be understood in technical sense-Residuary entry can be taken refuge of only in absence of specific entry”. Also, in the case of Western India Plywood’s Ltd. Vs. Collector of Customs, Cochin (2005 (188) E.L.T. 365 (S. C.)) it was held that “Classification of goods-application of residuary entry to be made with extreme caution, being attracted only when no other provision expressly or by necessary implication applies to goods in question “
The classification of the goods under the Customs Tariff is governed by the principles as enumerated in the General Rules of Interpretation (GRI) set out in the First Schedule to the Customs Tariff Act, 1975 (‘Tariff’). As per Rule I of the GRI, classification of the imported products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI. GRI-I stipulates that the goods under consideration should be classified in accordance with the terms of the Headings and any relevant Section or Chapter Notes. These Section or Chapter Notes and Sub-Notes give detailed explanation as to the scope and ambit of the respective Sections and Chapters. These Notes have been given statutory backing and have been incorporated at the top of each Section/Chapter. Thus, it becomes necessary to refer to relevant Section notes, Chapter notes and Heading notes to decide the classification of the subject goods under consideration.
The Customs Tariff is aligned up to the 6-digit level with the Harmonized System of Nomenclature (HSN) issued by the World Customs Organization (WCO) For uniform interpretation of the HSN, the WCO has published detailed Explanatory Notes to the HSN which have long been recognized as a safe guide to interpret the Schedules to the Customs Tariff. In the case of Collector of Central Excise, Shelling Vs. Wood Craft Products Ltd., (1995) 77 ELT 23 (S.C.) the Hon’ble Supreme Court of India held that in case of doubt, HSN is a safe guide for ascertaining true meaning, if any, expression used in the Act, unless there is an express different intention indicated in the Customs Tariff itself. The same view has been taken by the Hon’ble Supreme Court in the case of CC v. Business Forms Ltd., 2002 (142) E.L.T. 18 (S.C.). Therefore, to further interpret the relevant Headings, Sub-Headings and Section Notes under the First Schedule of the Customs Tariff, reliance can also be placed on the explanatory Notes to the HSN.
Heading 2008 covers ‘Fruit, Nuts and Other Edible Parts of Plants. Otherwise, Prepared or Preserved, Whether or Not Containing Added Sugar or Other Sweetening Matter or Spirit, Not Elsewhere Specified or Included’. It is quite obvious that the subject goods in question is “an edible part of plants”.:
Explanatory notes to heading explain that this heading covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters or in the preceding headings of this Chapter.
“The explanatory notes further explain that this heading inter alia included: Almonds, ground-nuts, areca (or betel) nuts and other nuts, dry roasted, oil roasted or fat-roasted, whether or not containing or coated with vegetable oil, salt, flavours, spices or other additives.”
It can be seen from the wording used, the processes mentioned in Chapter 8 include chilling, steaming, boiling, drying and provisionally preserving. It does not specifically include the process of roasting. Here, it is important to understand the difference between the processes of moderate heat treatment & dehydrating drying referred in chapter 8 and processes of dry roasting, oil-roasting and fat-roasting referred in chapter 20. The terms dry-roasting, oil roasting and fat-roasting however are not defined in the Customs Tariff Act, 1975. Therefore, these terms have to be understood in a commonly accepted sense. The Hon’ble Apex Court in the case of Alladi Venkateswarlu Vs. the Government of Andhra Pradesh 1978 AIR 945 held that “the commonly accepted sense of a term should prevail in construing the description of an article of food”. In common trade parlance, “drying” is a method of food preservation by the removal of water content. On the other hand, “roasting” means the excess or very high heat treatment that produces fundamental chemical and physical changes in the structure and composition of the goods, bringing about a charred physical appearance. Therefore, drying is a moisture removal process involving methods such as dehydration. evaporation; etc., whereas roasting is a severe heat treatment process.
It is inferred from the submissions made by the applicant that the subject goods are oven roasted Cashew Nuts, Almond Nuts and Pista Nuts. I am of the considered view that the explanatory notes specifically cover the roasted Almonds. Further, Oven Roasted Almond Nuts and Pista Nuts falls under the category of “other nuts” to get itself covered into the inclusions as enumerated in the said explanatory note. Further, the subject goods are a resultant of the roasting process as elaborated by the applicant in the application. “Roasted Cashew Nuts” are specifically covered under CTI 2008 1910, therefore ‘Roasted Cashew Nuts’ merits classification under CTI 2008 1910. Further, roasted Almond Nuts and roasted Pista Nuts merit classification under CTI 2008 1991 as Other roasted nuts and seeds.
9.5 Further, the applicant has proposed for availing Country of Origin benefit under Notification No. 46/2011-Cus dt 01.06.2011, Notification No. 26/2000-Cus dated 01.03.2000 and Notification No. 62/2022-Customs dated 26.12.2022.
9.5.1. The preferential BCD under Notification No. 46/2011-Cus, is subject to the importer proving to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of the countries as mentioned in Appendix I or Appendix II of the said Notification, in accordance with provisions of the Customs Tariff Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India Rules, 2009, published in the notification of the Government of India in the Ministry of Finance (Department of Revenue),No. 189/2009-Custous (N.T.) dated the 31′ December 2009 and in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.
9.5.2. Further, preferential BCD under Notification No. 26/2000-Cus dated 01.03.2000, is subject to the importer proving to the satisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, in accordance Witlf–the Customs Tariff (Determination of Origin under the Free Trade Agreement between the Democratic Socialist Republic of Sri Lanka and the Republic of India) Rules, 2000 published with the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 19/2000-Customs (N.T), dated the 1″ March, 2000 that the goods in respect of which the benefit of this exemption is claimed are of the origin of Sri Lanka and in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules. 2020.
9.5.3. Similarly, preferential BCD under Notification No. 62/2022-Customs, shall be available only if importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of Australia, in accordance with the Customs Tariff (Determination of Origin of Goods under the India-Australia Economic Cooperation and Trade Agreement) Rules, 2022 dated 22.12.2022 and in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.
10. In view of the above discussions and findings of the case, I reach to conclusion that the goods on which ruling is sought are classifiable under the respective Customs Tariff Items (CTI) of the First Schedule of the Customs Tariff Act, 1975, as follows:
| Sr.No. | Product Description | CTI/Ruling |
|---|---|---|
| 1. | Roasted Areca Nut | 2008 19 91 —-Other Roasted Nuts and Seeds
However, as discussed above in Para 9.4.1, the subject goods do not merit classification as Roasted Areca Nuts due to presence of Moisture content of 10-15%, which is higher than the threshold set by the Hon’ble High Court of Madras in its order dated 22.11.2024 (mentioned Supra). Further, it would be subject to examination and testing by field formation at the time of importation, FSSAI Notification and also subject to MIP conditions in terms of amended Import Policy issued by DGFT vide Notification No. 02/2025 dated 02.04.2025 |
| 2. | Areca Nut (dried) | 0802 80 10 –Whole,
0802 80 20 –Split), 0802 80 30 –Ground and 0802 80 90 –Other Further subject to testing at the time of importation in terms of FSSAI notification and would also be subject to MIP conditions in terms of amended Import Policy by DGFT vide Notification No. 02/2025 dated 02.04.2025 |
| 3. | Roasted Cashew Nut | 2008 19 10 |
| 4. | Roasted Almond Nut | 2008 19 91 |
| 5. | Roasted Pista Nut | 2008 19 91 |
10.1. As far as, the Country-of-Origin benefit under Notification No. 46/2011-Cus dt 01.06.2011, Notification No. 2612000-Cus dated 01.03.2000 and Notification No. 62/2022-Customs dated 26.12.2022 is concerned, these benefits shall be available only if importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of the respective country in terms of respective notifications mentioned supra and in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.
11. I rule accordingly.
