CAAR Mumbai Declines Advance Ruling on Roasted Areca Nut Classification: Analysis of In re Golden Harvest International

Background of the Advance Ruling Application

M/s. Golden Harvest International filed an application in Form CAAR-1 before the Customs Authority for Advance Rulings, Mumbai (CAAR) under Section 28-I of the Customs Act, 1962. The application, received on 22.09.2025, sought an advance ruling on:

  1. Whether “Roasted Betel nut/Areca Nut (whole/cut)” intended to be imported from Burma, Indonesia and Sri Lanka is classifiable under HS Code 2008 19 91 as per Schedule I of the Customs Tariff Act, 1975.
  2. Whether the specific processes applied to betel nut/areca nut would make the product “roasted” so as to merit classification under HS Code 2008 19 91 or any other heading.

The assessee proposed to import:

  • Roasted Areca Nut (whole), and
  • Roasted Areca Nut (cut/split),

processed through:

  • de-husking,
  • drying,
  • repeated roasting at temperatures above 150°C, and
  • reduction of moisture content below 6–7%.

They claimed that such products should fall under tariff item 2008 19 91 – “Other roasted nuts and seeds” – after the amendments introduced by the Finance Act, 2025.

In addition, the assessee claimed benefit of concessional rate of duty under Sl. No. 172 of Notification No. 41/2019-Customs (as amended), covering goods falling under headings 2007 10 to 2008 20.

Tariff Position and Assessee’s Classification Stand

Relevant Tariff Entry under Chapter 20

The assessee relied on the amended structure of Chapter 20, particularly heading 2008, which 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.”

Under sub-heading 2008 19 (Other, including mixtures), the following relevant entries appear post Finance Act, 2025:

  • 2008 19 21 – Makhana: Popped
  • 2008 19 22 – Makhana: Flour and Powder
  • 2008 19 29 – Makhana: Other
  • 2008 19 91 – Other Roasted Nuts and Seeds
  • 2008 19 92 – Other Nuts, otherwise prepared or preserved
  • 2008 19 93 – Other roasted and fried vegetable products
  • 2008 19 99 – Other

The assessee asserted that roasted areca nut clearly fits the description “Other Roasted Nuts and Seeds” under tariff item 2008 19 91.

Process of Roasting as Explained by the Assessee

The assessee noted that neither the Customs Tariff Act, 1975 nor the HSN defines “roasting”. Accordingly, they cited standard dictionaries:

  • Merriam-Webster – referring to cooking or drying by exposure to dry heat.
  • Britannica – describing roasting as cooking by dry radiant heat, including in ovens or over open fire/embers.

On this basis, the assessee detailed the industrial process for roasted areca nuts:

  1. De-husking and initial drying of raw areca/betel nuts.
  2. Feeding into a roasting oven and heating above 150°C.
  3. Multiple heating cycles: removing, cooling at room temperature, and re-introducing into the oven, repeating until moisture content falls below 6%.

They argued this process is qualitatively distinct from mere drying or boiling and amounts to full-fledged roasting.

Reliance on General Rules for Interpretation and HSN

The assessee invoked Rule 1 of the “General Rules for the Interpretation of Import Tariff”, asserting that classification must follow:

  • The terms of the headings, and
  • Any relevant Section or Chapter Notes.

Since heading 2008 and tariff item 2008 19 91 specifically cover roasted nuts and seeds, they contended that roasted areca nuts necessarily fall under this provision.

They further relied on the HSN Explanatory Notes to heading 2008, which explicitly mention:

“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.”

On this basis, they argued:

  • Dry roasted areca/betel nuts are expressly contemplated in heading 2008;
  • Therefore, roasted areca nuts must be classified under Chapter 20 and not under Chapter 08.

To reinforce the weight of HSN Explanatory Notes, the assessee cited:

  • L.M.L. Ltd. Versus Commissioner of Customs – 2010 (258) E.L.T 321 (S.C)
  • Holostick India Ltd. Versus Commissioner of Central Excise, Noida – 2015 (318) E.L.T 529 (S.C)
  • Collector of Central Excise, Shillong Versus Wood Craft Products Ltd – 1995 (77) E.L.T 23 (S.C)

These decisions recognize HSN Explanatory Notes as a dependable guide for classification.

Distinction Between Chapter 08 and Chapter 20

The assessee compared the scope of:

  • Chapter 08 – “Edible fruit and nuts; peel of citrus fruit or melons”; and
  • Chapter 20 – preparations and preserved products.