2014 (12) TMI 1208 - AT - Customs

Import of Fresh Frozen Green Peas - The Plant and Quarantine department advised the Customs department vide letter dated 16-11-2009 to deport back to the supplies or destroy the goods as there is bio-security risk. - The adjudicating authority allowed the redemption of the goods for re-export only on payment of fine - Held that - The appellant cannot be held guilty. In view of my above discussions - since the final test as regard Pest Risk Analysis was not carried out the reliance can be placed on other documents such as Phytosanitary Certificate report of Public Health Department of Municipal Corporation of Greater Mumbai and also certificate of Quarantine given by the supplier by which it can be ascertained that the product in question is free from pest insect and fungal infection. - Impugned order set aside - Decided in favor of appellant.

Summary

Issues:
1. Confiscation of goods for violation of Plant and Quarantine regulations.
2. Rejection of appeal by Commissioner of Customs (Appeals) based on absence of test report.
3. Compliance with compulsory requirements for import of Fresh Frozen Green Peas.
4. Discrepancy in decision-making by Plant and Quarantine Authority.
5. Failure to conduct Pest Risk Analysis affecting clearance of goods.

Analysis:
1. The case involved the confiscation of goods by Customs Authority due to the violation of Plant and Quarantine regulations. The appellant imported Fresh Frozen Green Peas without obtaining the necessary NOC from the Plant & Quarantine Authority, leading to the confiscation of goods under relevant customs laws.

2. The appeal filed by the appellant was rejected by the Commissioner of Customs (Appeals) based on the absence of a test report confirming the absence of pests in the imported goods. The appellant argued that the decision should not have been based solely on the lack of a test report, especially when efforts to conduct the test were hindered by the Customs authority's non-cooperation.

3. The appellant claimed to have complied with compulsory requirements for the import of Fresh Frozen Green Peas by producing a Phytosanitary Certificate from the Country of Origin. The appellant argued that the confiscation was unjustified as the product did not fall under the category of seeds and had met the necessary compliance requirements.

4. There was a discrepancy in the decision-making process of the Plant and Quarantine Authority, as they issued a general advisory against the import of Frozen Green Peas without providing specific reasoning or conducting a Pest Risk Analysis. The appellant contended that the advice was arbitrary and not applicable to their specific case.

5. The failure to conduct a Pest Risk Analysis and provide a test report created uncertainty regarding the presence of pests in the imported goods. The Tribunal noted that without conclusive evidence of pests, reliance could be placed on documents such as the Phytosanitary Certificate and reports from relevant departments to establish the absence of pests, insects, and fungal infections in the product. Consequently, the Commissioner's decision to reject the appeal was overturned, and the appellant's appeal was allowed based on the available documentation and lack of Pest Risk Analysis.