Binding advance ruling and test reports supported clearance of imported supari despite a pending misclassification notice.

Advance ruling on tariff classification remained binding on customs authorities, and prior judicial and laboratory material supported treatment of the imported goods as menthol scented supari fit for human consumption. On that prima facie basis, seizure and continued withholding for alleged misclassification were not justified, and clearance was directed against payment of duty or IGST, if applicable, under the declared classification. The pending show cause notice was left open, with customs permitted to adjudicate the classification dispute on merits after clearance against bond.

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Issues: Whether the imported goods were liable to be withheld or seized on a prima facie allegation of misclassification, and whether clearance could be directed in the face of a binding advance ruling, supporting test reports, and a pending show cause notice.

Analysis: The classification of the goods had already been determined by the advance ruling authority, and that ruling was binding on the customs authorities. The earlier challenge to that ruling had already failed, and the later order of the High Court in the petitioner's own matter had permitted release of similar goods on the same tariff classification. The food safety and customs laboratory reports also supported the petitioner's case that the goods were menthol scented supari fit for human consumption and conforming to the applicable food standards. In these circumstances, the seizure and continued non-clearance on the allegation of misclassification were found to be unjustified at the prima facie stage. At the same time, the pending show cause notice was left open for adjudication in accordance with law, and the Court directed clearance against payment of duty and furnishing of bond.

Conclusion: Clearance of the imported goods was directed on payment of duty or IGST, if any, applicable under the declared classification and on furnishing a bond towards the duty demanded in the show cause notice, while the customs authorities were permitted to proceed with adjudication on merits.

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