Case Law Details
Shreedhra Agro LLP Vs Commissioner of Customs (Delhi High Court)
1. The appellant has filed the present appeal impugning an order dated 22.06.2022 passed by the Customs Authority for Advance Rulings, New Delhi (hereafter ‘CAAR’) whereby the products proposed to be imported by the appellant being ‘Scented & Flavoured and Sweetened Supari’ are classified under sub- heading 080280 of the First Schedule of the Customs Tariff Act, 1975.
2. According to the appellant, the said ruling is erroneous and the product in question is classifiable under Chapter 21 of the First Schedule of the Customs Tariff Act, 1975, more particularly, sub-heading 21069030.
3. Mr. S. Sunil, learned counsel appearing for the appellant fairly accepts that the decision of this Court in M/s. Great Nuts Impex Pvt. Ltd. Vs. Commissioner of Customs Delhi & Ors.: CUSAA 17/2022 decided on 01.03.2023 would cover the issue in favour of the Revenue. He, however, submits that in the said matter, the Circular issued by the Government of India, Ministry of Finance, Department of Revenue dated 06.10.2021 (Circular No.163/2019/2021-GST) had not been brought to the notice of this Court. He submits that in terms of the said circular, the GST Council had clarified that “Scented Sweet Supari” falls under tariff item 21069030 as “Betel Nut product” known as “Supari” and attracts GST rate of 18%. It is clarified as under:
“7. Applicability of GST on scented sweet supari & flavored and coated illaichi:
7.1 Representations have been received seeking clarification regarding classification and applicable GST rates on flavored, and coated illaichi, and scented sweet supari.
“7.2 Scented sweet supari falls under tariff item 2106 90 30 as “Betel nut product” known as “Supari” and attracts GST rate of 18% vide entry at S. No. 23 of Schedule III of notification No. 1/2017-Central Tax (Rate) dated 28.6.2017.”
7.3 Flavored and coated illaichi generally consists of Cardamom Seeds, Aromatic Spices, Silver Leaf, Saffron, Artificial Sweeteners. It is distinct from illaichi or cardamom (which falls under heading 0908). It is clarified that flavored and coated illaichi is a value added product and falls under sub-heading 2106. It accordingly attract GST at the rate of 18% (S. No. 23 of schedule III of notification No. 1/2017-Central Tax (Rate) dated 28.6.2017).”
4. Ramachandran, learned counsel for the respondent submits that it is possible for the GST Department to have a separate classification and the same is not governed by the Customs Tariff Act, 1975.
5. This Court is not called upon to examine the validity of the said circular. The decision of the learned CAAR as well as the decision of this Court in M/s. Great Nuts Impex Pvt. Ltd. (supra), is rested on the decision rendered by the Supreme Court in Crane Betel Nut Powder Works v. Commissioner of Customs and Central Excise, Tirupathi & Anr.: 2007 (210) E.L.T. 171. The CAAR had not accepted that the clarification issued by the Circular No.163/2019/2021-GST dated 06.10.2021 would be material in determining the question. The learned CAAR has also not been persuaded to accept a different view from that of the Supreme Court on the basis of the clarification issued in terms of the aforementioned circular.
6. Learned CAAR has noted that the said circular does not provide any reasons for such clarification.
7. We find no infirmity with the decision of the learned As stated above, we are not required to examine the validity of the clarificatory circular issued by the respondent.
8. The appeal is, accordingly, disposed of.
