TaxTMI 
TaxTMI 
2025 (7) TMI 362
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....0 FOB and "grain discharger machinery & parts" falling under CTH 84378020, valued at Rs. 2,29,381, FOB, under invoice No. HT 222 dated 11.07.2023; there was no dispute as regards grain discharger machinery & parts; customs did not agree with appellant's description of PUSA Brown Basmati Rice; customs drew the samples and sent the same to Central Revenue Chemical Laboratory, New Delhi, vide Test Memo No. 42/EXP/ HTPL/2023 dt. 16.08.2023 to ascertain whether rice was "Brown Basmati Rice or Other; pending test report, goods were allowed to be exported provisionally, on furnishing Test Bond No. 2002161658 dated 18.08.2023 for Rs. 11,13,11,959. CRCL, New Delhi, vide letter F. No. 35-CUS/CRCL/ 2023-24 dated 25.09.2023 submitted a report to the effect that the sample under reference does not meet the specifications of brown basmati rice; on a clarification sought by customs, vide their letter dated 28.10.2023, CRCL, vide their letter F. No. 1-Food Section/CRCL/2022-23 dated 03.11.2023 clarified that based on tested chemical and physical parameters, the samples under reference does not meet the requirement of basmati rice. Hence, it may kindly be considered as other than basmati rice. 2.1....
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....ed to appreciate that FSSAI provisions are not applicable in respect of goods to be exported unless specifically mentioned in the Foreign Trade Policy. He submits that department did not place on record any statutory provision/notification/circular etc, stipulating the applicability of FSSAI provision for export of basmati rice. 5. Learned Counsel submits further that the Adjudicating Authority erred in confiscating impugned goods under section 113 (d) of Custom Act; provisions ibid are not applicable in this case as the appellants and goods fulfilled all the necessary criteria laid down in Sl. No. 57 of the Schedule 2 of Export Policy as applicable to goods at ITC(HS) 1006 3020 i.e. brown basmati rice falling under heading 1006 3020; therefore, imposition of redemption fine of Rs. 1 crore is arbitrary and not justified. He submits that imposition of penalty under any section is not justified as there was no mala fide act or intention and no mis-declaration and falsification of documents; adjudicating authority withdrew the penalty imposed under section 114 (i) of Customs Act, and imposed penalty under section 114A and 114AA of the Act. 6. Shri Siddharth Jaiswal, assisted by Shri....
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....itted through the non-EDI Land Custom Stations (LCS) on Indo-Bangladesh and Indo-Nepal border subject to registration of quantity with DGFT. Regional Authorities (RAs) Kolkata & Patna and such other RAs as notified by DGFT from time to time will be the designated RAs for the purpose of such registration of quantity; (iv) Export to EU Member States and European countries, namely Iceland, Liechtenstein, Norway and Switzerland permitted subject to issuance of certificate of Inspection by Export Inspection Council/Export Inspection Agency. (v) Certificate of Inspection by Export Inspection Council / Export Inspection Agency shall be mandatory for export to remaining European countries with effect from 1st January, 2022 (vi) Exports to Russian Federation permitted subject to pre-shipment quality certification issued by (1) Insecticide Residue Testing Laboratory. (2) Geo-Chem Laboratories Pvt Ltd. (3) Reliable Analytical Laboratory (4) Arbro Pharmaceuticals Ltd. (5) Shri Ram Institute for Industrial Research, Delhi (6) Shri Ram Institute for Industrial Research, Branch Office Bangalore (7) Delhi Test House; and (8) Vimta Labs. or any other agency as may be notified fr....
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....; therefore, condition No (v) stands satisfied. (vi). As the exports are not to Russian Federation, condition No (vi) is not relevant. (vii). The appellant has not exported empty bags; 587.500 MT of brown basmati rice contained in 1875 bags was exported; further the appellants have exported rice in loose condition and empty bags with markings indicating the product being Indian Basmati Rice were kept therefore, conditions (vi) and (vii) stand satisfied. (viii) . the appellants entered into contract, as per PO No. 23-33 dated 11.07.2023, with overseas buyer M/s Flying Trade Limited, wherein terms of payment are 100% cash against document; therefore, condition no (viii) also stands satisfied. We however, find that the Revenue does not dispute the adherence to these conditions. 10. We find that the Food Safety and Standards Association of India (FSSAI) is the food authority in India established under Section 4 of the Food Safety and Standards Act, 2006; the functions of FSSAI (as laid down in Section 16 of the Act) are to regulate and monitor the manufacture, processing, distribution, sale and import of food so as to ensure safe and wholesome food; we find that "export"....
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....be exempted from domestic standards/ quality specifications. We find that in respect of the impugned goods no condition has been prescribed with reference to FSSAI standards and whatever condition that was prescribed has been satisfied by the appellants. 14. We further find that the Commissioner finds, as far as the applicability of FSSAI standards for export goods as follows. 4.14. The Noticee has contended that the standards of 'Basmati Rice' laid down in FSSAI are applicable in respect of domestic sale and / or in respect of goods imported but are not applicable in respect of goods to be exported. I don't agree with their contention, in so much so, as discussed in the preceding's paras that the Food Safety and Standards Regulations are applicable to sale of food products in India, which covers the food products meant for exports also. It is mandatory to follow guidelines from the Food Safety and Standards Authority of India (FSSAI) for the export of food products from India to prevent the export of sub- standard or unsafe food products from India. Exporters of Food products are also required to obtain License from FSSAI like other Food Business Operators (FBOs) in India. So, ....