HC Rules Betel Nut Cuts Classifiable Under CTH 0802

Centax Editorial Board

May 19, 2026

• 3 min. read

Case Details: Globe Impex vs. Commissioner of Customs (Imports), New Delhi (2026) 40 Centax 156 (Tri.-Del)

Judiciary and Counsel Details

Ms Binu Tamta, Member (J) & Shri P.V. Subba Rao, Member (T)
Shri R.K. Hasija, Adv., for the Appellant.
Shri M.K. Shukla, Authorised Representative, for the Respondent.

Facts of the Case

The importer filed bills of entry for the clearance of betel nuts in cut pieces. The imported goods were covered under DGFT Notification No. 20/2015-20, dated 25-07-2018. The importer claimed classification under Customs Tariff Heading (CTH) 2106 90 30 of the Customs Tariff Act, 1975, for availing 100% basic customs duty exemption under Notification No. 96/2008-Customs, dated 13-08-2008. The importer stated that apart from breaking, splitting, cutting and addition of menthol, no further processes were undertaken on betel nuts. The Central Revenues Control Laboratory (CRCL) and Food Safety and Standards Authority of India (FSSAI) reports found the goods to be ‘areca nuts’ and ‘unsafe/sub-standard’ due to extraneous matter and mould. The Special Investigation and Intelligence Branch (SIIB) had given clearance for a previous consignment, and duty was paid as assessed. The importer relied upon CBIC Circular No. 163/19/2021, dated 06-10-2021 and DRI Alert Circular No. 4/2022, dated 25-08-2022. The department alleged classification under CTH 0802 80 90 of the Customs Tariff Act, 1975, attracting 60% basic customs duty and Minimum Import Price conditions under DGFT Notification No. 20/2015-20, dated 25-07-2018. The matter was placed before the High Court.

High Court Held

The High Court held that betel nuts in cut pieces are classifiable under Heading 0802 of the Customs Tariff and are excluded from Heading 2106. It was observed that cutting, crushing and splitting only enhance presentation and do not change the basic character of areca nuts. It was further held that the addition of flavouring or sweetening with essential or non-essential oils, menthol or sweetening agents does not result in a new and distinct product. It was also held that Supplementary Note 2 to Chapter 21 covers only ‘preparations containing betel nuts’, whereas the imported goods remained areca nuts and not a preparation. CBIC Circular No. 163/19/2021, dated 06-10-2021, was held inapplicable as it relates to GST classification, and DRI Alert Circular No. 4/2022, dated 25-08-2022, was also held inapplicable. The plea regarding earlier clearance was rejected as review is permissible under Section 28 of the Customs Act, 1962. The goods were held to be restricted due to violation of Minimum Import Price conditions and classifiable under CTH 0802, attracting 60% basic customs duty, and were further held to be unsafe under Section 3(1)(zz)(x) of the Food Safety and Standards Act, 2006 and liable for absolute confiscation under Section 25 of the Customs Act, 1962.

List of Cases Cited

Axiom Cordages Ltd. v. Commissioner — (2023) 4 Centax 120 (Tri. – Bom.) — Referred [Para 7]
Ayush Business Overseas v. Commissioner — 2021 (378) E.L.T. A142 (S.C.) — Followed [Paras 17, 19]
Azam Laminators Pvt. Ltd. v. Commissioner — 2019 (367) E.L.T. A22 (Tribunal) — Relied on [Paras 8, 14]
Crane Betel Nut Powder Works v. Commissioner — 2007 (210) E.L.T. 171 (S.C.) — Followed [Paras 7, 8, 14, 15, 16]
Globe Impex — 2021 (378) E.L.T. 383 (A.A.R. – Cus. – Del.) — Referred [Paras 2, 7]
ITC Ltd. v. Commissioner — 2019 (368) E.L.T. 216 (S.C.) — Followed [Paras 7, 20]
Priya Blue Industries Ltd. v. Commissioner — 2004 (172) E.L.T. 145 (S.C.) — Followed [Para 20]
Rumen Dey v. Commissioner — 2023 (386) E.L.T. 894 (Tribunal) = (2023) 10 Centax 174 (Tri. – Cal.) — Referred [Para 7]
S.T. Enterprises v. Commissioner — 2021 (378) E.L.T. 514 (Tri. – Chennai) — Relied on [Paras 15, 16, 17]
Satnam Overseas Ltd. v. Commissioner — 2015 (318) E.L.T. 538 (S.C.) — Followed [Para 15]
Servo-Med Industries Pvt. Ltd. v. Commissioner — 2015 (319) E.L.T. 578 (S.C.) — Followed [Para 15]