2026 (3) TMI 1212 - HC - Customs

FSSAI certification controls import clearance of food consignments unless Customs produces clear material rebutting the test reports.

Where imported roasted areca nuts were tested by the food safety authority and cleared by NOCs as fit for human consumption, those certified reports ... Legal effect of the FSSAI laboratory reports and NOCs issued after sampling and testing under the FSSAI regime - illegally seizing the roasted areca nut - Clearance of the imported goods - provisional release of imported goods under Section 110A - Whether the impugned seizure memo and the impugned order of provisional release of imported goods by Respondent no. 3 and Respondent no. 5 respectively are in exercise of the proper authority of law and have been passed without considering the credible reports submitted by the Petitioner i.e. the reports of FSSAI. Primacy of FSSAI laboratory certification in food import clearance - HELD THAT: - The Court held that where the Food Safety and Standards Authority of India (FSSAI), through its authorised officers and notified laboratories, examined samples and issued NOCs confirming the consignments conformed to applicable FSSAI standards (including moisture parameters), the Customs authorities were not justified in disregarding those conclusive FSSAI reports and undertaking re-examination leading to seizure. The judgment emphasises that FSSAI is a specialised statutory authority tasked with food safety testing under rigorous procedures and that its laboratory analysis and certification are entitled to decisive weight; absent a plausible, satisfactory justification by Customs for re-testing, the FSSAI reports cannot be lightly set aside. The court also recorded its own inspection of samples and concluded they were roasted areca nuts, supporting the conclusion that Customs' contrary stance was not tenable. [Paras 15, 16, 18] Customs' re-examination and seizure of the consignments after FSSAI NOCs were issued was not justified and was unlawful. Validity of the provisional release order conditionally requiring a no-use bond and a bank guarantee - HELD THAT: - The Court found the condition in the provisional release order demanding a bank guarantee and an undertaking that the goods would not be used for human consumption to be without authority in the facts of this case where FSSAI had certified the consignments fit for human consumption. Consequently, the court quashed the seizure memo and the portion of the provisional release order imposing the bank guarantee and directed release of the goods on payment of duty without insisting on a security deposit or no-use undertaking. The Court nevertheless mandated a supervised cleaning/removal of damaged items and post-cleaning re-certification by FSSAI before dealing in the domestic market, thereby preserving food-safety oversight. [Paras 16, 19] The requirement of a bank guarantee and a no-use bond was quashed; goods to be released on payment of duty subject to supervised cleaning and FSSAI re-certification before domestic sale. Final Conclusion: The Court quashed the seizure memo and the portion of the provisional release order requiring a bank guarantee and no-use undertaking, directed release of the roasted areca nuts on payment of duty without security deposits, and required supervised removal of damaged items and FSSAI re-certification before the goods may be sold for human consumption. Issues: Whether the seizure memo dated 7.2.2026 and the provisional release order dated 20.2.2026 imposing a bank guarantee and a no use undertaking were lawful and could stand in the face of FSSAI test reports and NOCs certifying the imported roasted areca nuts as fit for human consumption.Analysis: The dispute turns on the legal effect of the FSSAI laboratory reports and NOCs issued after sampling and testing under the FSSAI regime and whether Customs authorities were entitled to re examine, re test and detain the consignments contrary to those FSSAI certifications. The legal framework includes the Food Safety and Standards Act, 2006, the FSSAI Import Regulations and the Food Import Manual procedures for laboratory analysis and issuance of NOCs, as well as relevant provisions of the Customs Act governing warehousing, test bonds and provisional release. The factual record contains FSSAI test reports dated 12.1.2026 and 19.1.2026 confirming conformity with applicable standards including moisture content below 10%, FSSAI NOCs for clearance, subsequent CRCL reports prepared after re testing, and physical inspection of samples produced before the Court. The authoritative FSSAI reports were not shown to be unreliable for the consignments as a whole; the CRCL observations of limited damaged portions did not establish that the entire consignments were non conforming or unfit for human consumption. Applying the import clearance regime and the procedures for laboratory analysis, the tests and NOCs by the notified food authority carry controlling weight in determining fitness for human consumption where not successfully rebutted by clear contrary evidence.Conclusion: The seizure memo dated 7.2.2026 and the provisional release order dated 20.2.2026 insofar as they required a bank guarantee of Rs.10,00,000 and a no use undertaking are quashed; the consignments shall be released on payment of appropriate duty subject to the limited supervisory cleaning and recertification measures specified. The outcome is in favour of the petitioner (assessee).Ratio Decidendi: Where a specialized statutory food safety authority, following the prescribed sampling and laboratory procedures, issues conclusive test reports and NOCs certifying imported food consignments as conforming and fit for human consumption, Customs authorities may not detain, reclassify or refuse clearance of the consignments on the basis of routine re testing or isolated observations unless they produce clear, credible and material evidence rebutting the FSSAI findings.