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2019 (10) TMI 114 - HC - CustomsSmuggling - release of seized goods with conveyance - Betel Nuts (Arecanuts) - goods in damaged condition - N/N. 09 /1996-Cus (NT) dated 22.01.1996 issued under Section 11 of the Customs Act read with Section 3(2) of the Foreign Trade (Development and Regulation) Act 1992 - HELD THAT - The issue in the present case is squarely covered by the decision in the case of M/S OM SAI TRADING COMPANY AND M/S MAA KAMAKHYA TRADERS VERSUS THE UNION OF INDIA THE COMMISSIONER OF CUSTOMS AND ORS. 2019 (9) TMI 1283 - PATNA HIGH COURT where it was held that This Court is of the considered opinion that in the given facts and circumstances of the case where the matter is still under investigation and even some accredited labs have come into existence this Court need not interfere with the seizure of the Betel Nuts at this stage and this issue be kept open for consideration at appropriate stage after the investigation is over and the respondents receive a report as regards the country of origin from an accredited lab within a period of three months by following the established procedures. In the present case the samples of Betel Nuts are in damaged condition with presence of insects. These are thus unsafe for human consumption. Other unifications are still going on. The petitioner no. 1 is thus unable to make out a case for direction to release the Betel Nuts. Release of vehicle - HELD THAT - It will be open for petitioner no. 2 to make an appropriate application before the competent authority who will consider the same and pass an appropriate order thereon within a period of 30 days from the date of filing of the application. Application disposed off.
Issues Involved:
1. Legality of the seizure of Betel Nuts and the truck. 2. Maintenance and safety of the seized goods. 3. Validity of the procedures followed during the seizure. 4. Determination of the country of origin of the seized Betel Nuts. 5. Compliance with food safety standards. 6. Provisional release of the seized goods. Detailed Analysis: 1. Legality of the Seizure of Betel Nuts and the Truck: The petitioner sought the release of 20,650 kgs of Betel Nuts and a truck, which were seized on 06.02.2019. The seizure was challenged on the grounds that the customs officials did not have a valid reason to believe that the goods were smuggled or liable for confiscation under the Customs Act, 1962. The seizure was based on Notification No. 09/1996-Cus (NT) dated 22.01.1996, which prohibits imports from Nepal of goods exported to Nepal from other countries. The petitioner argued that the customs officials did not provide sufficient evidence or specific information to justify the seizure. 2. Maintenance and Safety of the Seized Goods: The petitioner requested that the authorities ensure the condition and safety of the perishable goods to prevent deterioration in value. The court did not specifically address this issue in the judgment. 3. Validity of the Procedures Followed During the Seizure: The petitioner argued that the customs officials did not follow proper procedures, such as recording internal information in Form DRI-1 and verifying the authenticity of the information before taking action. The court found that the procedures followed by the customs officials were in accordance with the law and guidelines provided by the relevant authorities. 4. Determination of the Country of Origin of the Seized Betel Nuts: The customs officials sent samples of the Betel Nuts to two laboratories to determine their country of origin. The Arecanut Research & Development Foundation, Mangalore, and the Central Food Laboratory, Kolkata, both reported that it was difficult to identify the country of origin. The court noted that there was no standardized laboratory test for tracing the country of origin of Betel Nuts, and thus, the seizure could not be justified solely based on the laboratory reports. 5. Compliance with Food Safety Standards: The samples of Betel Nuts were found to be non-conforming to food safety standards due to the presence of damaged nuts and insects, making them unsafe for human consumption. The court referred to various circulars and guidelines issued by the Ministry of Finance and the Food Safety and Standards Authority of India (FSSAI) that mandate strict testing and compliance with food safety standards for imported food items. The court upheld the findings of the food safety reports and found no fault with the rejection of the petitioner's request for the release of the goods. 6. Provisional Release of the Seized Goods: The court referred to Circular No. 35 of 2017, which provides guidelines for the provisional release of seized goods. The guidelines state that provisional release shall not be allowed for goods that do not fulfill statutory compliance requirements. Since the Betel Nuts were found to be unsafe for human consumption, the court found no reason to grant provisional release of the goods. The court also noted that further investigation was ongoing to determine the country of origin of the seized goods. Conclusion: The court dismissed the writ application, finding no reason to interfere with the seizure of the Betel Nuts and the truck. The petitioner was unable to make a case for the release of the Betel Nuts due to non-compliance with food safety standards. The court allowed the petitioner to apply for the release of the vehicle, which would be considered by the competent authority within 30 days.
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