Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Customs Customs + HC Customs - 2011 (12) TMI HC This

  • Login
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2011 (12) TMI 564 - HC - Customs

Issues involved: Challenge to order for confiscation and destruction of goods u/s Prevention of Food Adulteration Act, 1954; Request for permission to reprocess and re-export tea consignment.

Confiscation and Destruction Order: The petitioner, engaged in tea import and export, faced rejection of 12 out of 13 containers of Indian Black Tea exported to Iraq due to non-conformance with standards u/s Prevention of Food Adulteration Act, 1954. Port Health Officer's analysis revealed excessive crude fiber percentage and inadequate shelf life. Petitioner's request for re-processing and re-exporting the goods was denied, leading to an order for confiscation, destruction, and a penalty of Rs. 10,00,000.

Legal Challenge: Petitioner challenged the order, seeking permission to clear the tea consignment to a 100% export-oriented unit for re-processing and re-export. Argument centered on circulars indicating restrictions on clearance for domestic consumption, not export-oriented units. Petitioner proposed reprocessing at an export-oriented unit to improve quality and shelf life. Respondent contended goods unfit for domestic consumption due to non-compliance with standards.

Judgment: The Court noted circulars referred to in the order pertained to goods imported for domestic consumption, not those rejected for re-import. Previous case precedent allowed reprocessing to meet standards. Petitioner's proposal for reprocessing at an export-oriented unit was deemed feasible to ensure compliance. Court directed the respondent to consider a realistic approach, permitting reprocessing and re-exporting upon submission of a representation, with conditions to prevent domestic sale. Decision to be expedited within a week, without interference in the penalty imposed. Petitioner retains the right to challenge the order through appropriate means.

 

 

 

 

Quick Updates:Latest Updates