Court clarifies distinction between food additives and food, directs regulatory authority to decide on use of vegetable fat in filled chocolates

The court determined that the subject goods are a food additive based on specific regulations. It clarified that a food additive is distinct from food and that Packaging and Labelling Regulations do not apply to food additives. Labeling deficiencies in imported goods can be rectified in India, and the court directed the regulatory authority to decide on the use of vegetable fat in filled chocolates within six months. The appeal was dismissed with costs awarded to the respondent in one case and partly allowed with directions in another.

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Issues Involved:
1. Nature of the subject goods: whether they are food or a food additive.
2. Whether a food additive is also considered food.
3. Applicability of the Packaging and Labelling Regulations to food additives.
4. Compliance of the subject goods with the Packaging and Labelling Regulations.
5. Curability of deficiencies in imported goods' compliance with Packaging and Labelling Regulations in India.

Detailed Analysis:

Nature of the Subject Goods:
The court determined that the subject goods, specifically "YO-MIX 305 LYO 50 DCU," are a food additive. This was established based on their specific mention in the Safety and Standards Regulations as a food additive.

Whether a Food Additive is Also Food:
The court analyzed the definitions of "food" and "food additive" under Sections 3(1)(j) and (k) of the FSS Act. It concluded that a food additive is distinct from food. The definition of food emphasizes substances intended for human consumption, whereas food additives are substances not normally consumed as food by themselves but are added for technological purposes during food manufacturing.

Applicability of the Packaging and Labelling Regulations to Food Additives:
The court held that the Packaging and Labelling Regulations, made under Section 23 of the FSS Act, apply only to food and not to food additives. The term "packaged food products" in Section 23 does not extend to food additives. The court emphasized that the appellant authority cannot apply these regulations to food additives without specific provisions.

Compliance of the Subject Goods with the Packaging and Labelling Regulations:
Given the court's determination that the Packaging and Labelling Regulations do not apply to food additives, the compliance question was rendered moot. However, the court noted that the appellant authority could make specific regulations for food additives under Sections 16 and 19 of the FSS Act if deemed necessary.

Curability of Deficiencies in Imported Goods' Compliance with Packaging and Labelling Regulations in India:
The court opined that deficiencies in labeling of imported goods could be cured in India before their release by customs authorities. It emphasized that the responsibility for such labeling should lie with the food business operator in India, not the foreign manufacturer. The court found no legal prohibition against curing labeling deficiencies in India.

Additional Judgment Analysis:

LPA No.711/2014:
This appeal concerned the import of chocolates found non-compliant with the Packaging and Labelling Regulations and the Safety and Standards Regulations. The court addressed two main issues:

1. Curability of Labeling Defects:
- The court reaffirmed that labeling defects in imported goods could be rectified in India. It rejected the appellant authority's insistence on re-shipping goods to the foreign manufacturer for relabeling.

2. Use of Vegetable Fat in Filled Chocolates:
- The court examined Regulation 2.7.4 of the Safety and Standards Regulations, which prohibits chocolates from containing vegetable fat other than cocoa butter. The court found that this prohibition applies to the chocolate shell but not necessarily to the filling inside the chocolate. The court directed the appellant authority to decide on this matter within six months, considering international standards and practices.

Summary:
1. Food Additive Distinction: A food additive is distinct from food as defined in the FSS Act.
2. Regulatory Authority: The FSS Act empowers the appellant authority to regulate food additives separately from food.
3. Packaging and Labelling Regulations: These regulations apply only to food, not to food additives.
4. Curable Labeling Defects: Labeling defects in imported goods can be cured in India before customs release.
5. Vegetable Fat in Chocolates: The court referred the issue of vegetable fat in filled chocolates back to the appellant authority for a decision within six months, allowing the current interpretation to prevail in the interim.

Costs and Orders:
- LPA No.659/2014: Dismissed with costs of Rs. 20,000 to the respondent No.1 / writ petitioner.
- LPA No.711/2014: Partly allowed with directions for the appellant authority to decide on the vegetable fat issue within six months.

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