Imported roasted areca nuts released after FSSAI tests confirm compliance with Food Safety Standards Regulations 2011

The Madras HC directed release of seized imported roasted areca nuts after FSSAI laboratory tests confirmed the goods conformed to Food Safety and Standards Regulations 2011 standards and were fit for human consumption. The court found that despite petitioner's pre-seizure representations remaining unanswered by respondents, FSSAI had definitively established the goods were properly classified areca nuts meeting safety requirements. The respondents were ordered to release the consignments upon fulfillment of imposed conditions, with the petition being disposed of favorably for the petitioner.

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Issues Involved:
1. Classification of imported goods.
2. Jurisdiction of the Court in directing the release of goods.
3. Validity of FSSAI reports for classification and fitness for human consumption.
4. Provisional release of goods under the Customs Act.

Summary:

Issue 1: Classification of Imported Goods
The petitioners, M/s. Universal Impex and M/s. Neena Enterprises, imported goods labeled as roasted areca nuts. The Customs Authority for Advance Rulings (CAAR) had previously classified roasted areca nuts under Customs Tariff Heading (CTH) 2008 19 20. This classification was affirmed by the Division Bench of the High Court, which held that roasted areca nuts fall under CTH 2008 19 20 and not under CTH 08 02 80. Consequently, the classification issue does not require further consideration in these petitions.

Issue 2: Jurisdiction of the Court in Directing the Release of Goods
The respondents argued that the relief claimed for the release of goods cannot be sought under Article 226 of the Constitution of India and that such matters fall within the exclusive jurisdiction of customs authorities. However, the Court noted that the petitioners had made several requests for the release of goods, which were not responded to by the respondents. The Court held that it has the jurisdiction to exercise discretion in appropriate cases, especially when the factual issue of whether the goods are roasted areca nuts and fit for human consumption has been resolved in favor of the petitioners.

Issue 3: Validity of FSSAI Reports for Classification and Fitness for Human Consumption
The FSSAI was directed to test samples from each consignment to determine if they qualify as roasted areca nuts and are fit for human consumption. The FSSAI's accredited laboratory confirmed that the samples were roasted areca nuts conforming to the standards specified in Regulation 2.3.55 of the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011. The Court accepted these reports, noting that both questions were answered affirmatively by the FSSAI.

Issue 4: Provisional Release of Goods under the Customs Act
The respondents contended that the goods were seized and that no application for provisional release u/s 110A of the Customs Act, 1962, was made. The Court, however, directed the respondents to release the consignments subject to the payment of applicable taxes, execution of a personal bond for differential duty, and submission of requisite certificates. The Court emphasized that this order would not prevent the respondents from undertaking assessment in accordance with the Customs Act.

Conclusion:
The Court disposed of the writ petitions with specific directions for the release of the consignments to the petitioners, subject to certain conditions, including the payment of applicable taxes and execution of a personal bond. The Court also directed the respondents to consider any request for waiver of demurrage expeditiously. The order emphasized that the provisional release should occur within 48 hours of fulfilling all conditions. No costs were imposed, and connected writ miscellaneous petitions were closed.

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