BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 26.11.2025 CORAM THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN and W.M.P.(MD)No.22523 of 2023 N.V.K. Mohamed Sultan Rowther & Sons, Rep by its Partner, M.Rajamohamed, S/o.N.V.K.Mohamed Sulthan Rowther, 57, Nehruji Nagar, Dindigul - 624 001, Dindigul District. ... Petitioner Vs.

The Additional Commissioner of CGST and Central Excise, O/o.The Commissioner of CGST and Central Excise, Madurai, No.4, Lalbahadur Shastri Road, Bibikulam, Madurai. ... Respondent Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari, calling for the records pertaining on the files of the respondent herein in F.No.GEXCOM/ADJN/GST/ADC/298/2023 dated 29.09.2023 quash the same.

For Petitioner : Mr.N.Prasad, For Mr.Y.Prakash.

For Respondent : Mr.N.Dilipkumar

ORDER

Heard both sides.

2.The writ petitioner is a partnership firm engaged in manufacture and supply of branded and scented areca / betel nuts. They are sold under the brand name of “Roja Pakku” in small pouches. The period in question is from July, 2017 to March, 2023. The petitioner classified their goods under Chapter 8 of the Customs Tariff Act, 1975 r/w. Serial No.28 of Schedule I of Notification No.1/2017, dated 28.06.2017. The entry reads as follows:-

“0802 – dried areca nuts, whether or not shelled or peeled.”

3.The stand of the respondent is that this classification is not correct and the right classification would be under Chapter 21 of the Customs Tariff Act r/w. Serial No.23 of Schedule III of Notification No.

1/2017, dated 28.06.2017. The said entry reads as follows:-

“All kinds of food mixes including instant food mixes, soft drink concentrates, sherbat, betel nut product known as supari, sterilized or pasteurized mill stone, ready-to-eat packaged food and milk containing edible nuts with sugar or other ingredients”

4.It is not in dispute that Serial No.23 was subsequently amended with effect from 15.11.2017 vide Notification No.41/2017 dated

14.11.2017. The amended entry reads as follows:-

“Food preparations not elsewhere specified or included other than roasted gram, sweet, meats, batters, including idly / dosa batter, namkeens, bhujiya, mixture, chabeana and similar edible preparations in ready for consumption form, khakhra, chutney powder, diabetic foods.”

5.The expression “betel nut product known as supari” no longer finds mention in the entry made in Serial No.23 post 14.11.2017.

6.The stand of the department is that notwithstanding such deletion, the writ petitioner's product would still fall under Chapter 21 since it would not fall under Chapter 8. If the goods falling under Chapter 8, they are subjected to levy of 5%. The goods fall under Chapter 21 would attract levy of 18%. The department relies on Note 3 to Chapter 8. It reads as follows:-

“Dried fruit or dried nuts of this Chapter may be partially rehydrated or treated for the following purposes: (a) for additional preservation or stabilization (for example, by moderate heat treatment, sulphuring, the addition of sorbic acid or potassium sorbate); (b) to improve or maintain their appearance (for example, by the addition of vegetable oil or small quantities of glucose syrup), provided that they retain the character of dried fruit or dried nuts”.

7.According to the petitioner, the raw betel nuts purchased by them from the growers are subjected to the following process:-

“(i) Betel nuts are sundried and cleaned for removal of dust.

(ii) The betel nutsare broken into smaller pieces using a machine.

(iii) The betel nuts are mildly heated using small quantity of vegetable oil apart from applying heat to make them brittle (iv) Thereafter, small quantities of sugar, saccharine, Glycerine and small quantity of spices for flavor are added along with a small quantity of menthol which is used as preservative.

Thus, what is ultimately sold is only grounded betel nuts.”

8.The only question that calls for consideration is whether on account