Import clearance of Hexane consignments was made conditional on industrial use safeguards and end-use compliance to prevent diversion.

Imported Hexane consignments were considered for interim release pending writ proceedings, with safeguards aimed at ensuring industrial use and preventing diversion for food-grade use. The laboratory report indicated conformity with Hexane, Food Grade under Indian Standard 3470:2017, while the Court noted the material could also serve industrial purposes. To protect revenue and end-use compliance, clearance was made conditional on industrial use only, inspection of books and records, execution of end-use and actual-user undertakings, and a statutory auditor's certificate confirming consumption in the factory. The consignments were directed to be assessed and cleared for home consumption or warehousing, as applicable, subject to those conditions.

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Issues: Whether the imported Hexane consignments should be released pending the writ proceedings, subject to safeguards ensuring industrial use and preventing diversion for food-grade use.

Analysis: The laboratory report stated that the samples met the characteristics of Hexane, Food Grade under Indian Standard 3470:2017, while the Court noted the competing position that the material could also be used for industrial purposes. In view of the large quantity and value of the consignments and the need to protect revenue and end-use compliance, interim clearance was considered appropriate with conditions requiring industrial use only, inspection of books and records, execution of end-use and actual-user undertakings, and a statutory auditor's certificate of consumption in the factory.

Conclusion: The import consignments were directed to be assessed and cleared for home consumption or warehousing, as the case may be, subject to the stipulated conditions.

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