2012 (5) TMI 15 - HC - Customs

Re-import of the product returned by dis-satisfied customer - Port Health Inspector declared the goods not in conformity to the standards prescribed by the Prevention of Food Adulteration Act cannot be allowed to be dumped on the local consumers - Held that - The test report and the details no where indicates that the product is dangerous for human consumption - the appellant must be given a chance and allowed to re-process under the supervision of the concerned official at the ware house and then re-export the same subject to test report to be obtained from CFTRI at the instance of the Port Health Officer in favour of assessee.

Summary

Issues:
1. Exported consignment of Cardamom returned due to non-conformity with standards.
2. Dispute over re-export or destruction of the returned product.
3. Challenge to the judgment of the learned single Judge.

Issue 1: Exported consignment of Cardamom returned due to non-conformity with standards.
The case involved an exporter who sent a consignment of Cardamom to Israel, which was later returned to India as it did not meet the standards for consumption in the foreign country. The Port Health Inspector examined the product and sent it for testing at CFTRI, Mysore. The test report indicated that the product did not conform to the standards prescribed by the Prevention of Food Adulteration Act.

Issue 2: Dispute over re-export or destruction of the returned product.
The appellant sought directions from the court to allow the release of the goods or to re-examine them for possible re-processing and re-export. The Department insisted on either re-exporting or destroying the product as per the standards. The appellant argued that the product could be re-processed under supervision and then re-exported, citing past instances where similar concessions were granted for tea products.

Issue 3: Challenge to the judgment of the learned single Judge.
The learned single Judge opined that the product, being a food item, should not be dumped on local consumers if it was deemed unsuitable for consumption in the foreign country. The appellant challenged this judgment, arguing that the product could be made consumable and exported under supervision, without posing a health risk to local consumers. The High Court agreed with the appellant's contention and set aside the judgment of the learned single Judge.

In the detailed analysis, the High Court emphasized that the test report did not indicate any danger to human consumption but rather highlighted the need to meet export standards. The Court ruled in favor of allowing the appellant to re-process the product under supervision to ensure conformity with export standards before re-exporting it. The judgment highlighted the importance of following procedures and obtaining necessary certifications to facilitate re-processing and re-export of the product, ultimately allowing the appellant to rectify the non-conformity issue and proceed with exporting the Cardamom consignment.