2022 (6) TMI 1230 - HC - Customs

Seeking unconditional release of consignments - import of white whole Areca Nuts of Sri Lankan origin - HELD THAT - In the course of investigation the samples were drawn and sent to Arecanut Research and Development Foundation, Mangalore by the customs authorities for determination of Country of Origin. The report dated 30th January 2020 issued by Arecanut Research and Development Foundation, Mangalore states that it seems to be of white whole Areca Nuts of Sri Lankan origin. The Areca nut samples supplied are of poor quality and as much as 20% of nuts are infested with moulds and does not comply with BIS standards for Areca nut. They are neither fit for chewing nor consumption by humans . There is no affidavit in rejoinder and Mr.Inderpal Singh Nirmale counsel for petitioner stated that petitioner has not checked the goods recently but it is possible that what is stated in the affidavit in reply could be correct because of passage of time. Respondents are directed to destroy the consignment of Arecanuts as per the procedure prescribed within four weeks from today - petition disposed off.

Summary

Issues:
Import of Srilankan Arecanuts, Provisional assessment of goods, Requirement of bank guarantee, Verification of Country of Origin, Quality of imported goods, Destruction of consignment, Payment of costs and charges.

Analysis:
The petitioner imported Srilankan Arecanuts and filed three Bills of Entry with the customs authority. The goods were provisionally assessed, and the petitioner was directed to provide a bank guarantee for the differential duty based on the Country of Origin. However, the petitioner did not furnish the bank guarantee as directed, leading to the goods remaining in the customs area. The customs authorities sent samples for verification of the Country of Origin, which revealed that the Arecanuts were of poor quality and not fit for consumption by humans.

The court noted that the goods were not suitable for consumption and directed the respondents to destroy the consignment within four weeks. The prayer clause seeking release of the consignment unconditionally was not granted due to the unsuitability of the goods for consumption. Regarding the prayer clause for the respondents to pay the costs and charges, the petitioner was advised to take appropriate legal steps, such as filing a suit in the appropriate forum, which would decide on the merits of the claim. The court did not make any observations on the merits of the claim.

The petition was disposed of, and the court declined to grant a stay on the order of destruction, emphasizing that the goods were declared unfit for consumption, and no rejoinder was filed contesting the customs authorities' assertions. The judgment highlights the importance of compliance with customs regulations, verification of goods' quality, and the consequences of importing goods not suitable for consumption.