Food safety non-compliance on re-imported tea justified confiscation and redemption fine, while penalty failed for lack of mens rea.
Re-imported tea that failed food safety standards and lacked mandatory clearance from the competent health authorities was treated as liable to confiscation, and the associated redemption fine was sustained because the goods could not be released for home consumption. On penalty, the Tribunal noted that the record did not establish the requisite mens rea against the importer, so the penalty was deleted under the customs provision invoked. The appeal therefore succeeded only to the limited extent of setting aside the penalty, while confiscation and redemption fine were maintained.
Issues: (i) Whether the re-imported tea, found unsafe by the health authorities for not conforming to food safety standards, was liable to confiscation and redemption fine; (ii) Whether penalty was imposable in the absence of mens rea.
Issue (i): Whether the re-imported tea, found unsafe by the health authorities for not conforming to food safety standards, was liable to confiscation and redemption fine.
Analysis: The goods were re-imported as food articles and, under the food safety regime, imports of food articles are subject to mandatory compliance with domestic food safety requirements and clearance by the competent health authorities. The record showed that the sample was found unsafe because it did not conform to the applicable standards and was not free from extraneous matter. In that situation, the absence of mandatory clearance justified treating the goods as prohibited for release for home consumption and sustaining confiscation. Once confiscation was upheld, the associated redemption fine was also sustainable.
Conclusion: The confiscation and redemption fine were upheld and this issue was decided against the appellant.
Issue (ii): Whether penalty was imposable in the absence of mens rea.
Analysis: The adjudicating authority had imposed penalty on the importer, but the record did not disclose the necessary culpable intent for penal action. On the facts found, the Tribunal accepted that mens rea was not established for the purposes of penalty under the customs provision invoked.
Conclusion: The penalty was set aside and this issue was decided in favour of the appellant.
Final Conclusion: The appeal succeeded only to the limited extent of deleting the penalty, while the confiscation and redemption fine were maintained.
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