In re Gauma Apparels International Pvt Ltd (CAAR Delhi)
The Customs Authority for Advance Rulings (CAAR), Delhi, delivered its decision in the matter of In re Gauma Apparels International Pvt. Ltd., concerning the classification of flavoured supari imported from Sri Lanka and its eligibility for concessional customs duty under Notification No. 68/2012-Cus. dated 31.12.2012. The applicant sought clarity on whether the product was classifiable under Heading 2106 9030 of the Customs Tariff as “betel nut product known as supari” or under Heading 0802 8090 as “areca nuts – other.”
Product Description and Process
The applicant described flavoured supari as prepared from areca nuts (heading 0802 8000) by subjecting them to multiple processes including impurity removal, sterilisation, cutting, polishing, gravity separation, roasting, and addition of flavours such as menthol, spices, sweeteners, edible oil, and liquid flavours. The final product does not contain lime, katha (catechu), or tobacco.
Issue of Classification
The core dispute was whether flavoured supari should fall under:
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Chapter 8 (0802 8090 – Other Areca Nuts), as argued by the jurisdictional Commissionerate, or
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Chapter 21 (2106 9030 – Betel nut product known as supari), as argued by the applicant.
The Commissionerate relied on previous CAAR Mumbai rulings classifying menthol-scented supari under Chapter 8. They also pointed out that CAAR Mumbai had refrained from issuing a fresh ruling due to the Delhi High Court’s stay on a similar ruling in the case of Bag Industries (23.09.2024, extended on 29.07.2025). Hence, they suggested rejection of the present application.
Conversely, the applicant relied on judicial precedents, particularly the Madras High Court ruling in A.K. Impex v. Commissioner of Customs, Tuticorin [2024 (389) ELT 151 (Mad)], which held that flavoured supari is classifiable under 2106 9030. They also referred to CBIC Circular No. 163/19/2021-GST (06.10.2021), which clarified that “scented sweet supari” falls under tariff item 2106 9030.
Legal Framework and Interpretation
CAAR examined classification rules under the General Rules of Interpretation (GIR):
