The Allahabad High Court, Lucknow Bench has upheld the classification of roasted areca nuts under Customs Tariff Heading (CTH) 2008 19 20, as determined by the Customs Authority for Advance Rulings (CAAR).
The bench of Justice Om Prakash Shukla has directed the immediate release of the detained consignment imported by M/s Rawder Petroleum Pvt. Ltd., putting an end to months of dispute over alleged misclassification.
The petitioner, Rawder Petroleum obtained an advance ruling in September 2024, classifying roasted areca nuts under Chapter 20. Based on this, the company imported the goods from Indonesia to ICD Panki, Kanpur. The goods were declared as roasted areca nuts, processed at high temperatures, and supported by certifications and lab reports.
However, the customs department claimed the goods were actually dried areca nuts, not roasted, and thus should fall under Chapter 8 (CTH 0802 80). Relying on a lab report from the Central Revenue Control Laboratory (CRCL), customs detained the goods, alleging misclassification and unfitness for human consumption.
The Court found that the CAAR had correctly applied the law and accepted the roasting process, which involved temperatures of over 130°C and reduced moisture content. It emphasised that roasting and drying are distinct processes and that the classification under CTH 2008 19 20 was legally sound. The Court also criticised customs for ignoring favourable lab reports and for procedural irregularities in sampling and testing.
The court noted that the advance ruling was binding unless there was a change in facts or law, which was not the case here. The Court also referred to a recent DGFT notification that appeared to retrospectively alter the classification—confirming that ambiguity had existed, and the importer had followed due process.
The High Court dismissed Customs Appeals filed by the department and allowed Writ Petition filed by M/s Rawder Petroleum Pvt. Ltd. It ordered the immediate release of the detained consignment and further directed that, if required, the goods may be subjected to gamma irradiation treatment to ensure their fitness for human consumption.
Case Details
Case Title: M/S Rawder Petroleum Pvt Ltd. Versus Union Of India
Case No.: WRIT TAX No. – 71 of 2025
Date: 30.05.2025
Counsel For Petitioner: Ratnesh Chandra
Counsel For Respondent: Paawan Awasthi
