CUSAA6/2024 v. COMMISSIONEROFCUSTOMS
Judgment
CUSAA6/2024Page1of4 INTHEHIGHCOURTOFDELHIATNEWDELHI+CUSAA6/2024&CMAPPL.60407/2025GLOBEIMPEX&ANR......AppellantsThrough: Mr.PradeepJain, Adv.versusCOMMISSIONEROFCUSTOMS.....RespondentThrough: Mr.R.Ramachandran&Mr.PrateekDhir, Advs.CORAM:JUSTICEPRATHIBAM.SINGHJUSTICESHAILJAINORDER%22.09.20251.Thishearinghasbeendonethroughhybridmode.CMAPPL.60407/20252.ThisisafreshapplicationfiledbytheAppellantsseekingreleaseofthegoodsforthePetitionerunconditionallyforthepurposeofindustrialuse. 3. RelianceisplacedupontheorderpassedbythisCourtinW.P.(C)16560/2024titledM/sPerfectTradingCov. CommissionerofCustoms&Ors. 4. Theapplicationhasbeenperused. Thepresentpetitionchallengestheimpugnedfinalorderdated9thOctober,2023passedbytheCustomsExciseandServiceTaxAppellateTribunal(hereinafter‘CESTAT’).Thiswouldnotbeafitcaseforprovisionalrelease. Infact, themainmatteritselfarisesfromtheorderofCESTATdated9thOctober,2023whereintheorderoftheAdjudicatingAuthoritydated27thFebruary,2023hasbeenupheld.
TheAdjudicatingAuthorityhadarrivedatthefollowingconclusion: This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/09/2025 at 12:55:23 CUSAA6/2024Page2of4“22. Further, SupremeCourtinM/sCRANEBETELNUTPOWDERWORKSversusCOMMR.OFCUS.&C.EX.TIRUPATHIreportedin2007(210)E.L.7T.171(S.C.).,ChennaiandinthecaseofM/sAzamLaminatorsPvt. Ltd. (wherescentedbetelnutwasbeingmanufacturedbycrackingofdriedbetelnutintosmallpieces, andthereaftergentlyheatingitwithadditionofvanaspatioil, sweeteningandflavoringagentsandmarketedinsmallpouchesasNizamPakku(in Tamil)/BetelNut(in English),the Hon'bleCESTATheldtheresultantproductclassifiableundersub-heading0802.9019ofCentralExciseTariffandnotunder21069030assupariforperiodafter07.07.2009arerelevant. Putsimply, thesedecisionsclearlyimplythatadditionoffavoringagentsdonotchangethecharacterofthegoods, meaninginthepresentcasebetelnutwouldcontinuetoremainbetelnutandnotbecomepreparationofbetelnut.
23. ItisnotedthattheCustomstariffisbroadlyalignedwiththeHSNandinternationalclassificationsystems. Therefore, evenastherecommendationofGSTCouncilisnoted, whichdoesnotexplainthereasonsforthesaidrecommendation; itisfeltthatindeterminingtheclassificationofcuttingmentholsupari, atstageofimport, thequestionshouldbeansweredessentiallyfollowingtheCustomstariffandHSN.Further, sincethequestionrelatestoclassificationofgoodsproposedtobeimported, guidanceofHarmonizedCommodityDescriptionandCodingSystemoftheWorldCustomsOrganization, towhichIndiaisasignatory, wouldbeuseful. ItisseenthatwithrespecttoChapter8,theHSNprescribesthefollowingasgeneralguidelines: FruitandnutsofthisChaptermaybewhole, sliced, chopped, shredded, stoned, pupea, grated, pealedorsbelled. TheadditionofsmallquantitiesofsugardoesnotaffecttheclassificationoffruitinthisChapter. "24. IntheviewofthediscussionsmadeinaboveParas, This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/09/2025 at 12:55:23 CUSAA6/2024Page3of4theproductinconsiderationisarecanutalsoknownasbetelnutinbrokenpieceswithadditionofmentholflavouringandthus, isnotapreparationofbetelnutasprescribedunderChapter21.Therefore,1findthat, thegoodsmeritclassificationundertariffitem08028090since, thegoodshavenotattainedthecharacterofpreparationofbetelnutsdespitetheprocessthatrawbetelnutshavesubjecttoadditionofmenthol(afavouringagent).Sincethegoodsmeritclassificationunder08028090,theexemptionunderS.No.1oftheNotificationno.96/2008dated13.08.2008isnotavailabletotheimporterinrespectofgoodsimportedvideBillofentryno.9145367dated16.06.2022and7724532dated.03.03.2022.” 5. TheCESTATvideorderdated9thOctober,2023hasobservedasunder: “CONCLUSION22.ThegoodsimportedbytheappellantareneitherproductofbetelnutnorpreparationcontainingbetelnutbutareonlybetelnutsincutpiecesandareexcludedfromChapterHeading2106andthesameareclassifiableunderchapterHeading0802.Consequently, thebenefitofNotificationNo96/2008dated13.8.2008of100%exemptionfromBCDisnotavailabletotheappellant.
Similarly, intermsofNotificationNo.20/2015-2020dated25.07.2018,theimportofarecanutsatlessthantheminimumpriceofRs.251/-perkg.areprohibitedgoods. Moreover, inviewofthetestreports(referredabove)thearecanutsimportedareunsafeaccordingtoSection3(1)(zz)(x)ofFSSAct,2006andastheydonotconformtothestandardsprescribedunderFoodSafetyandStandardRegulations,2011;thesameareliableforabsoluteconfiscationunderSection111(d),111(m)and111(o)oftheAct. Consequently, theappellantisliabletopaythedifferentialdutyofRs.46,95,133/-alongwithinterest. 23. Weagree_withtheAdjudicatingAuthoritythatthe This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/09/2025 at 12:55:23 CUSAA6/2024Page4of4appellanthadattemptedtoimportarecanutsinguiseofbetelnutproductsbymis-declaringandmis-classifyingunderChapter21soastoavailthebenefitof100%exemptionofBCDandtherebyevadepaymentoflegitimatecustomsduty.
Inviewthereof,M/s.GlobeImpexandalsoShriGaganUppalareliabletopenaltyunderSection112(a)(i)oftheAct.” 6. Sincethecaseinvolvesaclassificationissue, the PetitioneroughttoavailitsremediesinaccordancewithlawunderSection130EoftheCustomsAct,1962againsttheorderofCESTATdated9thOctober,2023.7.Needlesstoadd, the PetitionerisfreetoprayforthebenefitoftheperiodduringwhichthewritpetitionremainedpendinginthisCourtforcalculatingLimitation, under Section14oftheLimitationAct,1963.8.Petitionisdisposedofintheseterms. Allpendingapplications, ifany, arealsodisposedof. 9. Thenextdateofhearingstandscancelled.PRATHIBAM.SINGH,J.SHAILJAIN,J.SEPTEMBER22,2025 Rahul/Ck
Precedent status how later indexed judgments have treated this case
No known negative treatment found in the Courts & Cases corpus.
This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.