In re KMT & CO. (CAAR Mumbai)
Material Facts
M/s. KMT & Co. filed an application before the Customs Authority for Advance Ruling (CAAR), Mumbai under Section 28H(1) of the Customs Act, 1962 seeking advance rulings on the classification of Oven Roasted Areca Nuts, Oven Roasted Pistachios, Oven Roasted Almond Nuts and Oven Roasted Cashew Nuts proposed to be imported through Tuticorin Port. The applicant also sought a ruling on the applicability of Serial No. 172 of Notification No. 46/2011-Cus dated 01.06.2011 for imports from specified countries.
The applicant submitted the manufacturing processes for each product and contended that roasting transformed the products into “otherwise prepared or preserved” nuts classifiable under Chapter 20 rather than Chapter 8. It proposed classification of roasted areca nuts, roasted pistachios and roasted almond nuts under CTI 20081991 and roasted cashew nuts under CTI 20081910.
Procedural History
The application was forwarded to the Commissioner of Customs (Import), Tuticorin, for comments. No reply was received from the jurisdictional Commissionerate. During the personal hearing, the applicant reiterated its submissions, while no departmental representative appeared.
Legal Issues
The Authority considered:
- Whether Oven Roasted Areca Nuts were classifiable under CTI 20081991 and eligible for the benefit of Notification No. 46/2011-Cus.
- Whether Oven Roasted Pistachios were classifiable under CTI 20081991 and eligible for the notification benefit.
- Whether Oven Roasted Almond Nuts were classifiable under CTI 20081991 and eligible for the notification benefit.
- Whether Oven Roasted Cashew Nuts were classifiable under CTI 20081910 and eligible for the notification benefit.
Relevant Statutory Provisions
- Section 28H(1), Customs Act, 1962.
- Section 28-I(2) and proviso (b), Customs Act, 1962.
- Customs Tariff Act, 1975.
- General Rules for Interpretation of the Customs Tariff.
- Notification No. 46/2011-Cus dated 01.06.2011.
- 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.
- Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.
Applicant’s Submissions
