In re Veesan International Trading Private Limited (CAAR Delhi)
Background: M/s Veesan International Trading Pvt. Ltd. approached the Customs Authority for Advance Rulings (CAAR), Delhi seeking classification of “flavoured supari” proposed to be imported from Sri Lanka. The applicant also sought clarification on eligibility for concessional customs duty under Notification No. 68/2012-Cus. dated 31.12.2012. The matter required analysis of competing tariff headings under Chapters 8 and 21 of the Customs Tariff Act, 1975.
Product and Process: The applicant described the goods as areca nut–based preparations subjected to multiple processes, including impurity removal, sterilisation, polishing, cutting, roasting, blending with flavours such as menthol, spices, sweetening agents, edible oils, and final packing. Importantly, the product does not contain lime, catechu (katha), or tobacco, which are excluded ingredients for classification as “supari” under Chapter 21.
Issue of Classification: The applicant argued that the product merits classification under Chapter 21, Heading 2106, specifically under Tariff Item 21069030 (“betel nut product known as supari”). In contrast, the jurisdictional Commissionerate contended that the goods should be classified under Chapter 8, Heading 0802 (“areca nuts”), particularly under 08028090. Reliance was placed on earlier rulings of CAAR, Mumbai and Delhi classifying menthol scented supari under Chapter 8, as well as the pendency of litigation before the Delhi High Court in the case of M/s Bag Industries.
Legal Framework and Interpretation: The Authority examined the classification under the General Rules for Interpretation (GIR). Where goods are prima facie classifiable under more than one heading, Rule 3(a) provides that the most specific description is preferred.
