CUSAA 6/2024 $~78 * IN THE HIGH COURT OF DELHI AT NEW DELHI + CUSAA 6/2024 & CM APPL. 60407/2025 GLOBE IMPEX & ANR. .....Appellants Through: Mr. Pradeep Jain, Adv. versus COMMISSIONER OF CUSTOMS .....Respondent Through: Mr. R. Ramachandran & Mr. Prateek Dhir, Advs. CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE SHAIL JAIN O R D E R % 22.09.2025 1. This hearing has been done through hybrid mode. CM APPL. 60407/2025 2. This is a fresh application filed by the Appellants seeking release of the goods for the Petitioner unconditionally for the purpose of industrial use. 3. Reliance is placed upon the order passed by this Court in W.P.(C) 16560/2024 titled M/s Perfect Trading Co v. Commissioner of Customs & Ors. 4. The application has been perused. The present petition challenges the impugned final order dated 9th October, 2023 passed by the Customs Excise and Service Tax Appellate Tribunal (hereinafter ‘CESTAT’). This would not be a fit case for provisional release. In fact, the main matter itself arises from the order of CESTAT dated 9th October, 2023 wherein the order of the Adjudicating Authority dated 27th February, 2023 has been upheld. The Adjudicating Authority had arrived at the following conclusion: 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 CUSAA 6/2024 “22. Further, Supreme Court in M/s CRANE BETEL NUT POWDER WORKS versus COMMR. OF CUS. & C. EX. TIRUPATHI reported in 2007 (210) E.L.7T. 171 (S.C.)., Chennai and in the case of M/s Azam Laminators Pvt. Ltd. (where scented betel nut was being manufactured by cracking of dried betel nut into small pieces, and thereafter gently heating it with addition of vanaspati oil, sweetening and flavoring agents and marketed in small pouches as Nizam Pakku (in Tamil)/Betel Nut (in English), the Hon'ble CESTAT held the resultant product classifiable under sub-heading 0802.9019 of Central Excise Tariff and not under 21069030 as supari for period after 07.07.2009 are relevant. Put simply, these decisions clearly imply that addition of favoring agents do not change the character of the goods, meaning in the present case betel nut would continue to remain betel nut and not become preparation of betel nut. 23. It is noted that the Customs tariff is broadly aligned with the HSN and international classification systems. Therefore, even as the recommendation of GST Council is noted, which does not explain the reasons for the said recommendation; it is felt that in determining the classification of cutting menthol supari, at stage of import, the question should be answered essentially following the Customs tariff and HSN. Further, since the question relates to classification of goods proposed to be imported, guidance of Harmonized Commodity Description and Coding System of the World Customs Organization, to which India is a signatory, would be useful. It is seen that with respect to Chapter 8, the HSN prescribes the following as general guidelines: Fruit and nuts of this Chapter may be whole, sliced, chopped, shredded, stoned, pupea, grated, pealed or sbelled. The addition of small quantities of sugar does not affect the classification of fruit in this Chapter." 24. In the view of the discussions made in above Paras, 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 CUSAA 6/2024 the product in consideration is areca nut also known as betel nut in broken pieces with addition of menthol flavouring and thus, is not a preparation of betel nut as prescribed under Chapter 21. Therefore, 1 find that, the goods merit classification under tariff item 0802 8090 since, the goods have not attained the character of preparation of betel nuts despite the process that raw betel nuts have subject to addition of menthol (a favouring agent). Since the goods merit classification under 0802 8090, the exemption under S.No.1 of the Notification no.96/2008 dated 13.08.2008 is not available to the importer in respect of goods imported vide Bill of entry no. 9145367 dated 16.06.2022 and 7724532 dated. 03.03.2022.” 5. The CESTAT vide order dated 9th October, 2023 has observed as under: “CONCLUSION 22. The goods imported by the appellant are neither product of betel nut nor preparation containing betel nut but are only betel nuts in cut pieces and are excluded from Chapter Heading 2106 and the same are classifiable under chapter Heading 0802. Consequently, the benefit of Notification No 96/2008 dated 13.8.2008 of 100% exemption from BCD is not available to the appellant. Similarly, in terms of Notification No.20/2015-2020 dated 25.07.2018, the import of areca nuts at less than the minimum price of Rs.251/- per kg. are prohibited goods. Moreover, in view of the test reports (referred above) the areca nuts imported are unsafe according to Section 3 (1)(zz)(x) of FSS Act, 2006 and as they do not conform to the standards prescribed under Food Safety and Standard Regulations, 2011; the same are liable for absolute confiscation under Section 111(d), 111(m) and 111(o) of the Act. Consequently, the appellant is liable to pay the differential duty of Rs.46,95,133/- alongwith interest. 23. We agree _with the Adjudicating Authority that the 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 CUSAA 6/2024 appellant had attempted to import areca nuts in guise of betel nut products by mis-declaring and mis- classifying under Chapter 21 so as to avail the benefit of 100% exemption of BCD and thereby evade payment of legitimate customs duty. In view thereof, M/s. Globe Impex and also Shri Gagan Uppal are liable to penalty under Section 112(a)(i) of the Act.” 6. Since the case involves a classification issue, the Petitioner ought to avail its remedies in accordance with law under Section 130E of the Customs Act, 1962 against the order of CESTAT dated 9th October, 2023. 7. Needless to add, the Petitioner is free to pray for the benefit of the period during which the writ petition remained pending in this Court for calculating Limitation, under Section 14 of the Limitation Act, 1963. 8. Petition is disposed of in these terms. All pending applications, if any, are also disposed of. 9. The next date of hearing stands cancelled. PRATHIBA M. SINGH, J. SHAIL JAIN, J. SEPTEMBER 22, 2025 Rahul/Ck 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