2016 (3) TMI 428 - HC - Customs

Import of goods - change in the policy - Whether the goods imported are required to satisfy the standards those prescribed in Regulations framed under the FSS Act or not and at the time of import or at the time of release - Appellant imported betel nuts but an Authorised Officer under the Food Safety and Standard Authority of India refused to issue NOC on the ground that the betel nuts did not satisfy the standards for dry fruits and nuts - Held that - the petitioner s right to import is always subject to the policy of India. The importers have no right to import any food articles which is hazardous or injurious to the public health. The regulatory mechanism and the standards under the FSS Act are to ensure and protect the public from possible health hazards and risks and not intended to confer any right on the importer or the distributor or the manufacturer of the product. Therefore, the standards under the Food Safety Act will have to be looked into from the stand point of view of the general public. The legitimate expectation of the importer would always subject to the policy change of the State. If the law is changed as on the date of release, the importer is bound by the law on the date of release. The standards are prescribed for protecting the public. Therefore, the date of release is relevant not the date of import for the purpose of reckoning standards. - Decided against the appellant

Summary

Issues:
1. Interpretation of standards under the Food Safety and Standards Act (FSS Act) for imported goods.
2. Relevance of standards at the time of import versus at the time of release.
3. Application of legal principles regarding public health protection and food safety regulations.

Issue 1 - Interpretation of Standards under FSS Act:
The judgment addresses the question of whether imported goods must meet the standards prescribed under the Food Safety and Standards Act (FSS Act) at the time of import or at the time of release. The case involved the import of betel nuts that did not satisfy the standards for dry fruits and nuts. The court highlighted the importance of complying with the Contaminants Regulations, 2011, specifically focusing on aflatoxin limits.

Issue 2 - Standards at Import vs. Release:
The petitioner argued that the standards for aflatoxin in betel nuts at the time of import were different from the revised standards set by a subsequent notification. The court deliberated on whether the standards in place at the time of release should govern the import process. It emphasized the duty of the State to protect public health under Article 21 of the Constitution of India, stressing the need for food safety measures to ensure human life and health protection.

Issue 3 - Public Health Protection and Regulatory Mechanism:
The judgment highlighted that the importer's right to import goods is subject to India's policy, especially concerning public health hazards. It emphasized that the standards set under the FSS Act aim to safeguard the public from health risks and are not meant to confer rights on importers. The court underscored that any legitimate expectation of importers is subject to policy changes, and importers must adhere to the law in force at the time of release, considering public health protection as paramount.

The court dismissed the writ petition, citing legal precedents that support the application of current laws at the time of release, emphasizing public interest and the protection of human life and health as fundamental principles guiding food safety regulations.