Central Food Laboratory report governs classification and exemption for imported edible oil, overriding contrary customs test results.

In disputes over imported edible oil, the Central Food Laboratory report prevailed over a contrary customs laboratory report because food or edible articles must be tested by the statutory food-testing authority whose opinion has finality under the Prevention of Food Adulteration Act, 1954. The Board's circular on imported edible products reinforced reference to the proper food-testing authority. On that basis, the goods were treated as conforming to the prescribed standard, the exemption claim under the customs notification was upheld, and the proposed demand, confiscation and penalty were not sustainable.

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Issues: Whether the test report of the Central Food Laboratory, and not the report of the Central Revenue Control Laboratory, was to be accepted for determining the nature of the imported edible oil and the entitlement to exemption under the customs notification, and whether the demand, confiscation and penalty could be sustained.

Analysis: The imported goods were claimed to be crude oil of edible grade eligible for exemption under Notification No. 21/2002-Cus. The dispute turned on conflicting test reports. The Court followed the earlier Tribunal view that, in matters concerning food or edible articles, the Central Food Laboratory is the statutory authority whose opinion has finality under Section 4 of the Prevention of Food Adulteration Act, 1954. The Board's circular dealing with testing of imported edible products also supported reference to the proper food-testing authorities. In these circumstances, the report of the Central Food Laboratory showing conformity to the prescribed standard could not be displaced by the contrary customs laboratory report.

Conclusion: The imported goods were to be accepted on the basis of the Central Food Laboratory report, the exemption claim succeeded, and the demand, confiscation and penalty were not sustainable.

Ratio Decidendi: Where a specialized statutory food-testing authority is designated by law as the final certifying body for disputed food articles, its opinion prevails over a contrary customs laboratory report for determining classification, exemption entitlement, and related penal consequences.

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