2007 (5) TMI 162 - AT - Customs

Tribunal waives penalty, mandates testing & reprocessing of seized goods for human consumption

The Tribunal, after waiving the penalty, directed testing of seized hydrogenated vegetable oil at the Central Food Laboratory to ascertain if reprocessing ... Imported good ‘Hydrogenated vegetable oil’ seized because it was not up to the standards of ‘Prevention of Food Adulteration Rules’ – Revenue is directed to send the sample of goods for ‘Laboratory’ checking – If goods can become fit for use after re-processing, goods must be released Issues involved:Import of hydrogenated vegetable oil, inconsistency with prescribed standards, confiscation of goods, re-export option, fitness for human consumption, Gujarat High Court precedent, reprocessing of goods, testing by Food Laboratory, release of goods, waiver of penalty, disposal of appeal, Central Food Laboratory testing, perishable nature of goods, timeline for completion.Analysis:The case involves the import of a consignment of hydrogenated vegetable oil that was found to be inconsistent with the prescribed standards under the Prevention of Food Adulteration (PFA) rules regarding the melting point. As a result, the goods were confiscated with an option for re-export upon payment of a redemption fine. The applicant argued that the goods could be made fit for human consumption through reprocessing, citing a similar issue that was addressed by the Gujarat High Court in their own case. The High Court had allowed the release of goods subject to certain conditions, including retesting by a reputable Food Laboratory to determine if the goods could meet the standards for human consumption as per the PFA rules.In light of the above, the Tribunal, after waiving the pre-deposit of the penalty, disposed of the appeal by directing that a sample of the seized goods be sent to the Central Food Laboratory in Pune for testing. The purpose of this testing was to certify whether, after reprocessing, the goods could be made fit for human consumption. If the report from the laboratory was affirmative, the goods were to be allowed for reprocessing under bond. Subsequently, another sample of the reprocessed goods would be tested by the Central Food Laboratory to ensure compliance with the prescribed standards under the PFA rules. If the goods were found to be in conformity, they were to be released accordingly. It was emphasized that due to the perishable nature of the goods, the entire process should be completed within two months from the date of the order.The decision highlights the importance of ensuring that imported goods meet the required standards for human consumption, even if they initially fail to do so. By following a systematic testing and reprocessing procedure overseen by a reputable Food Laboratory, the authorities can determine the fitness of the goods for release in accordance with the law. The timeline set for completing the process underscores the urgency of dealing with perishable goods promptly to prevent any further deterioration or loss.