Customs, Excise and Gold Tribunal - Delhi
Uttam Chand Sunder Lal vs Collector Of Customs on 20 February, 1996
Equivalent citations: 1996ECR313(TRI.-DELHI), 1996(84)ELT489(TRI-DEL)
ORDER Shiben K. Dhar, Member (T)
1. This appeal arises out of Order No. 611/93-BCH, dated 18-10-1993 of Collector of Customs(Appeals).
2. The appellants imported a consignment of shelled almond Kernels and sought assessment and clearance claiming classification under Customs Tariff Heading 0802.12 which covers, "other nuts, fresh or dried, whether or not shelled or peeled almonds. Customs authorities, however, held such almonds which were Honey Roasted Almonds, Smokehouse Almonds, Sour Cream and Onion Almonds, Chilli with Lemon Almonds, Onion Garlic Almonds, etc. is classified under Customs Tariff Heading No. 2008.99.
3. Arguing for the appellants, the Ld. Advocate submits that Chapter 8 is specific to these nuts. The Explanatory Notes also indicate that this Chapter covers fruits, nuts, etc., which may be fresh, frozen or dried. Chapter 20 on the other hand relates to preparations of vegetables, fruits, nuts or other parts of plants. Considering that their products fall specifically under Heading 0802.12 as shelled almonds, that heading is to be preferred to the Residuary Heading 2008.99 under Chapter 20.
4. Ld. D.R. arguing for the Revenue submits that under Chapter Note 8 itself, HSN Notes indicate that while nuts etc. would be classifiable under Chapter 8, the processes like freezing, drying, etc. are such that these nuts would be 'unsuitable for consumption in that stage. On the other hand, HSN Notes in Chapter 20 clearly indicate that the Heading 20.08 covers fruits, nuts and other edible parts of plants and includes almonds, groundnuts, areca nuts and other nuts dried, roasted, oil roasted or fat roasted, whether or not containing or coated with vegetable oil, salt, flavours, spices or other elements. The almonds such as have been imported specifically answer to the description given under HSN Notes. In view of this, the products have been correctly classified under Heading 2008.99.
5. In the rejoinder, the Ld. Advocate conceeds that though Explanatory Notes prima facie may go against them, these Explanatory Notes are not binding and goods have to be classified in accordance with Chapter Note and Headings of the Tariff.
6. We have heard both sides. For the sake of clarity, we give below the type of goods which have been imported, as found on examination:
(1) Honey Roasted : Ingredients:
Almonds : Almonds oil and/or Sunflower oil, salt
and maltodextrin.
(2) Smokehouse : Ingredients:
Almonds : Almonds, Almonds Oil and/or
Sunflower oil, salt, maltodextrin,
natural Hickery, smoke flour yeast,
hydrolyzed vegetable protein &
natural flavourings.
(3) Sour Cream & : Ingredients:
Onion Almonds : Almonds, Almond Oil and/or
Sunflower Oil, Dehydrated Sour
Cream, Salt, Onion powder, whey
parsley, citric acid, lactic acid & natural
flavour.
(4) Chilli with : Ingredients:
Lemon Almonds : Almonds, Vegetable oil, salt, spice
dextrose, onion powder, natural
flavour, spice extractive lemon powder
(corn syrup solids, lemon juice solid)
lemon oil.
(5) Onion garlic : Ingredients:
Almonds : Almonds, vegetable oil, salt,
hydrolyzed vegetable protein, yeast
maltodextrin, onion powder, garlic
powder.
(6) Barbecue Almonds : Ingredients:
Almonds, Almonds Oil and/or
Sunflower oil, salt, maltodextrin,
spices, onion powder hydrolyzed
vegetable protein, garlic powder,
natural hickery, smoke flour spice
extractive and citric acid.
6.2 HSN Notes in Chapter 8 clearly indicate the processes to which the items mentioned therein may be subjected and while so indicating provide that these processed goods should be unsuitable for immediate consumption at that stage. The Notes also indicate that this Chapter does not include number of vegetable products more specifically covered in other Chapters even though botanically some of them are fruits and includes under such exclusion clause roasted fruits and nuts. On the other hand, Explanatory Notes under Heading 20.08 clearly specify that this heading includes almonds, groundnuts, areca 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 elements. Considering the ingredients used in processing these almonds, the final product clearly answers to the description given in Explanatory Notes under Heading 20.08. It is true that HSN Notes may not be binding and may have only a persuasive value. On the other hand, these Notes, which in a sense are quintessence of international expertise, have to be given due weight.
7. We are, therefore, of the view that these goods in view of the clear illustrations given in HSN Notes under Chapter 20 are classifiable under 2008.99 as held by authorities below.
8. In view of this, we uphold the impugned order and reject the appeal.