1993 (9) TMI 185 - AT - Customs

Imported cloves confiscated for non-conformity with purity standards allowed for industrial use under specified conditions

The Tribunal modified the order of confiscation of imported cloves due to non-conformity with purity standards under the Prevention of Food Adulteration ... Cloves on import found unfit for human consumption can be released for industrial use - Confiscation Issues:- Appeal against the order of confiscation of imported cloves for not conforming to purity standards under Prevention of Food Adulteration Act.- Importer's plea for industrial use of the cloves and release from confiscation.- Consideration of alternative uses for the goods and modification of the order of confiscation.Analysis:1. The appeal was made against the Collector of Customs' order upholding the confiscation of imported cloves due to non-conformity with purity standards under the Prevention of Food Adulteration Act. The appellants argued that the goods were imported from a reputed supplier with a Phytosanitary Certificate, and while some extraneous matter was found, it did not render the cloves harmful for consumption. They proposed using the cloves for industrial purposes, citing a ready customer for clove oil extraction. The appellants highlighted that the license covered the import of the cloves, and if used for industrial purposes, there should be no objection to their importation.2. The Senior Advocate for the appellants referenced a High Court judgment regarding the release of imported Pigeon Peas not fit for human consumption, which were later fumigated and sorted for industrial use. The appellants emphasized that the cloves could be used for industrial extraction of oil and requested permission for this purpose to prevent wastage of foreign exchange. They offered to provide evidence of industrial use and comply with any conditions set by the authorities. The appellants were not implicated in any intentional wrongdoing and had a history of normal business practices.3. The Department did not present a specific argument regarding the applicability of the Prevention of Food Adulteration Act to goods intended for industrial use. The Tribunal considered the license's coverage of the importation and the failed purity tests, emphasizing the Act's objective of safeguarding public health. While the cloves were unsuitable for human consumption, the Tribunal acknowledged their potential alternative industrial use. It was proposed that the goods could be released for industrial purposes under certain conditions, including the execution of an end-use bond and supervision during processing.4. The Tribunal noted that the extraneous matter in the cloves exceeded the prescribed limit but the oil content shortfall was minor. While the goods could not be allowed for public consumption in their current state, the authorities could have explored physical processes to remove extraneous matter before confiscation. However, given the potential for industrial use and lack of malintent by the importers, the Tribunal modified the order of confiscation. The appellants were allowed to use the cloves for industrial extraction of oil under specified conditions, leading to the appeal being allowed in favor of the appellants.