1997 (5) TMI 139 - AT - Customs

Summary

Issues:
1. Interpretation of the term "Diabetic Food" under the Import and Export Policy.
2. Classification of Poppy Seeds as "Diabetic Food."
3. Burden of proof for import eligibility under Open General License (OGL).
4. Comparison of opinions under Unani and Allopathic systems of medicine.

Analysis:
1. The case involved a dispute regarding the import of Poppy Seeds under the Customs Act, 1962. The appellant claimed that the seeds were "Diabetic Food" under the Import and Export Policy, seeking clearance under Open General License (OGL). However, the adjudicating authority confiscated the goods, alleging fraudulent import and incorrect valuation, leading to a penalty imposition.

2. The Tribunal analyzed the appellant's argument that Poppy Seeds were considered "Diabetic Food" under the Unani system of medicine. Despite the appellant's reliance on certain documents, the Tribunal found the evidence insufficient to establish the seeds as "Diabetic Food." It emphasized the lack of proof that the seeds were recommended or prescribed for diabetic patients, ultimately classifying them as a restricted item requiring a specific license for import, not eligible under OGL.

3. The Tribunal upheld the burden of proof on the importer to demonstrate the eligibility of the goods for OGL clearance. It rejected the appellant's claim that the burden was wrongly placed, emphasizing the necessity for the importer to substantiate the classification of goods as per the policy guidelines.

4. The comparison between opinions under the Unani and Allopathic systems of medicine was raised as an issue. However, the Tribunal clarified that it did not make any such comparison or prefer one system over the other. It focused on the specific evidence presented regarding the classification of Poppy Seeds as "Diabetic Food" under the relevant policy.

Judgment:
The Tribunal concluded that Poppy Seeds did not qualify as "Diabetic Food" under the Import and Export Policy, thereby upholding the decision to confiscate the goods and impose penalties. The case was remanded for the quantification of redemption fine and penalty, emphasizing the importance of meeting the criteria for import eligibility under the specified policy. The jurisdictional High Court was referred the question of whether Poppy Seeds could be considered "Diabetic Food" within the policy framework for further clarification.