SC decision of conversion of betel nuts into powder
In Crane Betel Nut Powder Works vs Commissioner of Customs & Central Excise, Tirupathi & Another the excise assessing officer took the view that crushing of betel nuts into smaller pieces and adding essential/non-essential oils, menthol, sweetening agent etc resulted in a separate product, namely betel nut powder.
However, the Supreme Court decided that no new product is created in the process and said that “In our view, the Commissioner of Customs and Central Excise (Appeals) has correctly analysed the factual as well as the legal situation in arriving at the conclusion that the process of cutting betel nuts into small pieces and addition of essential / non-essential oils, menthol, sweetening agent etc. did not result in a new and distinct product having a different character and use.”
Date of decision: 19 March 2007
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