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Issues: Whether imported wine and olive oil could be allowed clearance on post-import rectification of labeling defects, and whether the Commissioner (Appeals) could rely on later FSSAI guidelines to permit such rectification when the goods were found non-compliant under the applicable import requirements.
Analysis: The goods were imported on 29.07.2011 and were examined under the food safety regime then in force. The later labeling regulations and subsequent clarifications could not be applied retrospectively to cure violations existing at the time of import. The deficiency in labeling included matters treated as non-rectifiable under the governing instructions, including best-before/expiry declaration and ingredient list requirements. The authority relied on the earlier Division Bench decision governing similar import-control issues, and treated the later Single Judge order as not controlling. On that basis, the post-import rectification approach adopted by the Commissioner (Appeals) was held to be unsustainable.
Conclusion: The imported goods remained liable to confiscation and the adjudication order was restored; the importer was not entitled to clearance merely by subsequent rectification under later guidelines.
Final Conclusion: The appeal was allowed, the appellate order was set aside, and the original confiscation and penalty order was reinstated, with only the time for re-export extended.
Ratio Decidendi: Administrative instructions and later clarifications governing import labeling requirements operate prospectively and cannot retrospectively validate goods that were non-compliant when imported, especially where the defects are treated as non-rectifiable under the applicable regime.