Provisional release of seized areca nuts allowed on security after conflicting lab reports and deterioration findings.

Conflicting laboratory reports on seized roasted areca nuts did not prevent provisional release, because the latest National Food Laboratory report found non-conformity with food safety standards and evidence of deterioration, including moisture, damage, mould, insects, fungus hyphae and musty odour. The court held that continued retention by Customs would serve no useful purpose after repeated testing and the petitioner's undertaking that the goods would not be used for human consumption. Provisional release was therefore directed against security, while Customs retained liberty to issue notice and proceed with adjudication in accordance with law.

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Issues: Whether the seized consignment of roasted areca nuts was liable to be provisionally released on security pending adjudication, in view of the conflicting laboratory reports and the petitioner's undertaking that the goods would be used only for industrial purposes.

Analysis: The reports obtained at different stages were inconsistent, but the most recent report from the National Food Laboratory concluded that the sample did not conform to Regulation 2.3.55 of the Food Safety and Standards (Food Products Standards and Food Additives) Regulation, 2011 and showed moisture, damaged nuts, mould, insects, fungus hyphae and musty odour. The Court found that the goods had deteriorated during the period of repeated testing and continued retention by the Customs authorities. Since no useful purpose would be served by keeping the consignment with the Customs Department and the petitioner undertook that the goods would not be used for human consumption, provisional release was considered appropriate against security and with liberty to the Customs Department to issue notice and proceed in accordance with law.

Conclusion: The consignment was directed to be provisionally released on deposit of security of Rs. 5 lakhs, and the Customs Department was permitted to initiate adjudication in accordance with law.

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