TaxTMI 
TaxTMI 
2024 (6) TMI 351
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.... Central Revenues Control Laboratory (CRCL), New Delhi, Areca Nut Research and Development Foundation (ANRDF), Mangalore and National Food Laboratory of Food Safety and Standards Authority of India (FSSAI) at Ghaziabad. Report received from ANRDF indicated that the imported consignments of areca nuts were of bad quality and were infested with visible molds inside; the samples did not comply with the grades stipulated and that the areca nuts were a mixture of Indonesian and Sri Lankan origin. Statements of concerned persons from the importers and others were recorded and the imported consignments were seized under Section 110 of Customs Act, 1962 under the reasonable belief that they are liable for confiscation. The appellants' request that they may be permitted to re-export the consignments was rejected by the Revenue. Hon'ble High Court, vide Order dated 04.12.2023, disposed the Writ Petitions filed by the appellants, directing the Department to decide the representation of the appellants for re-export of goods within ten days. Accordingly, the Adjudicating Authority passed an order rejecting the request of the appellants for re-export of the goods; confiscating the imported goods....
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....elies on the following cases: 2015 (325) ELT 578 (Ker.) Ajfan Foods Vs Dy Commissioner of Customs. 2017 (356) ELT 38 Del. Alchemist Foods Ltd Vs Additional Commissioner of Customs 2018 (360) ELT 946 (Tr-All.) Commr. Of C. Ex. Ghaziabad Vs Bhole Baba Dairy Industries Ltd. 2015 (325) ELT 592 (Ker.) Choice Trading Corporation Ltd. Vs Commr of Cus (Import) Kochi 2022 (381) ELT 380 (Mad.) Deepam International Vs Commissioner of Customs Tuticorin (2023) 9 Centax 261 (Mad.) Genuine Spices Vs Commissioner of Customs Tuticorin. 2015 (324) ELT 83 (Ker.) Haripriya Traders Vs Union of India 2021 (377) ELT 865 (Tri-Mad) Royal Imports & Exports Vs Commissioner of Customs Tuticorin. 2003-TIOL-1525-HC-MAD-CUS Sankar Pandi Vs Union of India 2010-TIOL-147-SC-CUS Union on India &Ors Shri Sankar Pandi 2021-TIOL-232-CESTAT-Bang Nitta Gelatin India Ltd. Vs Commissioner of Customs Cochin. 2021 (377) ELT 458 (Tri-Chennai) Selvam Industries Ltd. Vs Commissioner of Customs Tuticorin 4. Learned Counsel for the appellants submits, also, that the appellants are regular importers having imported about ....
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....he same to the respective laboratories. In the instant case, though the Public Health Officer has cleared the consignments, he accepted in the statement recorded by the DRI Officers that he was not aware of the standards of FSSAI for areca nut; CRCL Delhi and National Food Laboratory, Ghaziabad are accreted laboratories and ANRDF have the requisite expertise regarding areca nut and as such the reports given by them cannot be brushed aside. 7. Learned Authorized Representative for the Department submits further that the investigation could lay their hands on the telephonic messages exchanged by the appellants and the foreign suppliers regarding the quality of the areca nut to be supplied; therefore, it cannot be said that the importer/ appellant has no knowledge and hence mens rea regarding the quality of the imported areca nuts. The Department has reasons to believe that the importer attempted to smuggle in low quality infested areca nuts into the country. As the impugned goods have been declared to be unfit for human consumption, they pose a health hazard to humans and therefore, the request for re-export was rightly rejected by the original and appellate authorities. 8. Lea....
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....age varied for different samples) of nuts are infested with visible molds inside. Grade of areca nuts, as per IS 16962: 2018: does not comply with any grades stipulated in BIS (ii) Food Safety and Standards Authority of India (FSSAI) Laboratory, Ghaziabad (Report Date: 02.11.2023) The sample of areca nut wasfound with the presence of visible fungal growth and musty in odor. The sample does not conform to the standards laid down under Regulation No.2.3.55 of Food Safety & Standards (Food Products Standards and Food Additives), Regulations, 2011, as the sample shows moisture content, damaged nut, damaged by mold & inspects, lead (as Pb) and copper (as cu) above the maximum prescribed limit. Sample shows presence of Insect Infestation, fungal growth and musty in odor. The sample is thus substandard under section 3(1)(zx) and unsafe under sections 3(1)(zz)(x)(xi)(xii) of the FSS Act 2006. (iii) CRCL Report dated 16.11.2023 The samples do not meet the requirement of betel nut/ areca nut as per FSSAI 2011 and IS 16962:2018. The samples received were broken by molds and insects. 11. The appellants contend that the samples w....
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.... matter is not a prohibition simpliciter; it is with reference to the requirements of balancing the wellbeing of the citizens on the one hand and the importers on the other; when personal business interest of importers clashes with public interest, the former has to, obviously, give way to the latter; the discretion in the cases of present nature, involving far reaching impact on public health, cannot be exercised only with reference to the hardship suggested by the importers; further, if these goods are allowed to be redeemed and re-exported then the chances of these same goods returning back to India cannot be ruled out. 14. Having heard the rival contentions and going through the records of the case, we find that though the appellants allege that the procedures laid down under FSSAI Regulations regarding the testing of samples have not been followed, the reports as such are not challenged by the appellants. Their only request appears to be that they may be permitted to re-export of goods; they contend that their foreign supplier has accepted to take back the goods as they are of inferior quality. Department contends that the importer has not supplied any documentary proof lik....
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....gned areca nut, if re-exported, would be used only for human consumption in Sri Lanka and elsewhere. It cannot also be presumed that the consignment will be routed back to India. We are of the considered opinion that while the appellants can be penalized for importing goods in violation of provision of FSSAI and rules made there under, not permitting reexport would not serve any purpose. It has been more than 06 months since the import has taken place and it is likely that the goods will further deteriorate further and would not have any commercial value and would be in the danger of losing industrial usage, if any. Allowing the same to further deteriorate would only cause unintended financial loss to the appellant and would cause wasteful outflow of foreign exchange from the Indian importer to the foreign buyer. The Department contends that no evidence of the foreign buyer accepting the consignment has been given. However, we find that vide letter dated 24.04.2024, M/s DLK Spice Export, Sri Lanka have requested the appellants to make the outstanding payment and to avoid financial strain, immediate action may be taken to re-export the goods. In view of the same, we are of the opini....