2013 (9) TMI 288 - AT - Customs

Goods matched with sample or not - assessee had imported a consignment of Indian groundnut kernels and declared the assessable value - samples were drawn from the consignment and CHA had reported that the samples do not meet the standards of FSSA regulations Held that - Court set aside the order and remit the matter back to the adjudicating authority to re-consider the issue after following the principles of natural justice issue needs to be considered as regards suitability of the cargo as a cattle feed - the case was of severe health hazard thus the court direct both the sides to take the matter seriously and come to a conclusion on the issue within 30 days of production of certified copy of the order decided in favour of assessee.

Summary

Issues involved:
Import of groundnut kernels, non-compliance with FSSA regulations, absolute confiscation, penalty imposition, suitability of groundnut kernels as cattle feed, certification requirement, remittal to adjudicating authority for re-consideration, health hazard concern, timeline for resolution.

Analysis:
The appeal before the Appellate Tribunal CESTAT Ahmedabad involved the import of 18.985 MTs of Indian groundnut kernels with declared assessable value. The issue arose when samples drawn from the consignment did not meet the FSSA regulations, specifically exceeding the permissible limits for Aflatoxin content and damaged kernels. The adjudicating authority and the first appellate authority had ordered absolute confiscation of the groundnut kernels and imposed a penalty. During the proceedings, the appellant's counsel argued that while the groundnut kernels might not be suitable for human consumption, they could be fit for cattle feed. Following a direction from the Bench, samples were tested, and a report indicated compliance with Aflatoxin limits but required certification of suitability as cattle feed from the Director of Animal Husbandry, Gujarat State.

Given the need to determine the groundnut kernels' suitability as cattle feed based on the certification, the Tribunal set aside the impugned order and remitted the matter back to the adjudicating authority for re-consideration upon the submission of the required certificate by the appellant. Emphasizing the seriousness of the health hazard issue, the Tribunal directed both parties to reach a conclusion within 30 days of the certified copy of the order's production. The decision aimed to ensure a thorough re-consideration by the adjudicating authority following the principles of natural justice, taking into account the potential health risks associated with the import.

The Tribunal's decision highlighted the importance of resolving the issue promptly, considering the health implications involved. By setting a timeline for resolution and emphasizing the need for a careful re-evaluation based on the certification of suitability as cattle feed, the Tribunal sought to address the complexities of the case while upholding procedural fairness and regulatory compliance in line with the FSSA regulations. The judgment underscored the significance of ensuring compliance with standards and regulations, especially concerning products with potential health hazards, to safeguard public health and maintain regulatory integrity in import procedures.