2016 (6) TMI 629 - HC - Customs

Import of betelnuts - testing of samples - whether or not fit for human consumption - Held that - CFL now reports that the betelnuts are fit for human consumption. In view of such report, obtained from a recognised Government organisation, the customs authorities should have no further reservation in releasing the consignment to the petitioners. - betelnuts covered by the relevant consignment ordered to be released to the petitioners, subject to payment of appropriate duty, within a fortnight.

Summary

Issues:
1. Import of betelnuts from Bangladesh
2. Second test conducted without notice to petitioners
3. Show-cause notice issued by customs authorities
4. Direction for drawing samples for testing
5. Report from Central Food Laboratory (CFL)
6. Release of consignment to petitioners
7. Setting aside of show-cause notice
8. Provisional release of goods

Analysis:
The judgment by the High Court of Calcutta pertains to a petition involving the import of betelnuts from Bangladesh. The consignment was inspected at the Petrapole check-post, and an initial test favored the petitioners. However, the customs authorities were dissatisfied and conducted a second test without informing the petitioners, which found the betelnuts unsuitable for human consumption. This led to the issuance of a show-cause notice dated May 7, 2014, which the petitioners challenged in the present petition due to the lack of notice for the second test.

A subsequent order dated April 15, 2016 directed the Assistant Commissioner of Customs, Petrapole, to draw samples from the stored goods in the presence of a petitioner's representative for testing at the Central Food Laboratory (CFL) in Kolkata. The CFL report confirmed the betelnuts' suitability for human consumption. Consequently, the court allowed the petition and directed the release of the consignment to the petitioners within a fortnight, subject to payment of appropriate duty, setting aside the show-cause notice as it was no longer valid in light of the CFL report.

The court emphasized that the release was provisional, with the customs authorities not levying damages, storage charges, or demurrage. The goods were to be released provisionally, with duty or disputed duty to be realized later. The judgment concluded with no order as to costs, and the parties were to receive urgent certified website copies of the order upon compliance with formalities.