2018 (2) TMI 1968 - AT - Customs

Export of Basmati Rice - restricted item - The test report stated that the samples did not confirm to standards prescribed in Basmati Rice (Export) Grading and Marketing Rules, 1979 - HELD THAT - The parameters laid down under the said DGFT Notification dated 5-11-2008 read with Notification No. 57/2009-2014, dated 17-8-2010 have been met with as discussed by the Learned Commissioner in the impugned Order-in-Original - there are no merit in the impugned order in confiscating the goods in question which have already been exported and imposing penalty on the appellant and its proprietor, based on the negative report received from laboratory in the light of Basmati Rice (Export) Grading and Marketing Rules, 1979, especially when the said report was challenged and request for retesting the samples by some other laboratory was made which was rejected without any plausible reasons. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Export of Indian Brown Basmati Rice Par-boiled not meeting the standards prescribed in Basmati Rice (Export) Grading and Marketing Rules, 1979.
2. Confiscation of goods exported and imposition of penalty based on a negative test report.
3. Interpretation of parameters for judging Basmati rice export.
4. Request for retesting the samples rejected without reasons.

Analysis:

1. The appellant exported Indian Brown Basmati Rice Par-boiled through 08 Shipping Bills, and samples were tested. The test report indicated non-conformance to Basmati Rice (Export) Grading and Marketing Rules, 1979, but compliance with length and length/breadth ratio requirements under DGFT Notification No. 55 (RE-2008)/2004-2009. The Order-in-Original held the export prohibited due to non-conformance with the rules, leading to confiscation of goods. The appellant challenged this decision in the present appeal.

2. The Revenue argued that the length and length to breadth ratio parameters from the DGFT notification should be additional criteria for determining Basmati rice. The exporters claimed to have exported Brown Basmati Rice to Italy under strict quality control. The Tribunal found that the goods met the parameters specified in the DGFT notification and disagreed with the confiscation and penalty imposed based on the negative laboratory report, especially when the request for retesting was denied without valid reasons.

3. The Tribunal noted that the issue had been previously decided in favor of the appellants in a similar case. Referring to the judgment in Customs Appeal No. C/54763/2014, the Tribunal ruled in line with the precedent, setting aside the Order-in-Original and allowing the appeals filed by the appellants. The decision granted the appellants consequential relief as per the law.

4. The judgment highlighted the importance of adhering to the parameters set by the DGFT notification in determining Basmati rice export suitability. It emphasized the need for proper consideration of all relevant factors and the right to challenge and retest disputed samples. The ruling provided clarity on the interpretation of export standards and the consequences of non-compliance, ensuring fair treatment and adherence to legal procedures in similar cases.