Provisional Release of Watermelon Seeds Approved: Court Reclassifies from Prohibited to Restricted with Conditions.

The HC set aside the order dated 23.02.2023, allowing the provisional release of 550 bags of Watermelon Seeds initially classified as prohibited. The court determined the seeds were restricted, not prohibited, and directed the respondent to issue a provisional release order under conditions similar to those for the Red Kidney Beans within one week.

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Issues Involved:
1. Quashing of the order rejecting the request for provisional release of imported goods.
2. Classification and valuation of the imported goods.
3. Compliance with import policy and regulatory requirements.
4. Provisional release of the goods.

Summary:

Issue 1: Quashing of the Order Rejecting Provisional Release
The petitioner sought the quashing of the order dated 23.02.2023, which rejected the request for provisional release of goods imported via Bill of Entry No. 3440622 dated 24.11.2022. The order allowed the provisional release of 149 bags of Red Kidney Beans but rejected the release of 550 bags of Watermelon Seeds, which were mis-declared as "Roasted Seeds Kernels" and classified as prohibited goods.

Issue 2: Classification and Valuation of Imported Goods
The petitioner imported Roasted Seeds, but the respondent detained the goods, claiming they were unroasted Watermelon Seeds classified under CTH 12077090, used for sowing. The petitioner contested this classification and requested the drawl of samples by FSSAI and NOC from the Plant and Quarantine Department.

Issue 3: Compliance with Import Policy and Regulatory Requirements
The respondent argued that the import of Watermelon Seeds was restricted post 30.09.2022, and the petitioner did not have a valid permit. The petitioner contended that the goods were imported under the policy that allowed clearance for shipments made by 30.09.2022. The respondent cited the absence of necessary certificates and compliance documents, including the phytosanitary certificate.

Issue 4: Provisional Release of the Goods
The court examined the notifications and found that the Watermelon Seeds fell under the "restricted" category but were not prohibited. The court referred to the Supreme Court judgment in Commissioner of Customs vs. Atul Automations Pvt. Ltd., which distinguished between restricted and prohibited goods, allowing for the redemption of restricted goods upon payment of market value. The court concluded that the Watermelon Seeds could be provisionally released under similar conditions imposed for the Red Kidney Beans.

Conclusion:
The writ petition was allowed, and the order dated 23.02.2023 was set aside concerning the Watermelon Seeds. The court directed the respondent to pass a provisional release order for the Watermelon Seeds under the same conditions as the Red Kidney Beans within one week.

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