2016 (12) TMI 642 - AT - Customs

Jurisdiction of Chemical examiner - whether the PHO was the sole authority to certify the goods in quantum and not the Chemical Examiner? - Held that - From the circular No. 58/2001 dated 25/10/2001, it is evidently clear that all consignments of imported edible/food products have to be referred to PHO s for testing and clearance shall be allowed only after receipt of the test reports. It is further clarified that where PHO s are not available, sample should be got tested from nearest Central Food Laboratory or any laboratory authorized for such testing by the Directorate General of Health Services. Contention of Revenue is that the PHO certificates issued in these cases do not specifically indicate the acid values which are required for considering benefit of Notification No. 21/2002 dated 01.03.2002. However on perusal of the PHO certificate it reveals that there is in fact a certification concerning that the samples conform to the standards laid down under item A-17.15 of the PFA Rules, 1955. When item A-17.15 is seen, it lays down that the standards prescribed in the rules for specific edible oils will also apply, except for moisture and acid value which shall not be more than 0.5 and 0.10 respectively. Item A-17.19 of the Rules specifically concerns palm oil, wherein it is laid down that acid value should not be more than 0.10. It is further clarified that palm oil imported into the country shall be refined before its supplied and it shall confirm to the standards laid down under A-17.15. These aspects are found very clearly brought out in the certificates issued by PHO. In the event, the conclusions of the lower appellate authority in Para 14 in his order that any matter concerning testing of edibility, it is the PHO and CFL alone that have the authority in reporting on the matter is correct and does not require any interference - appeal dismissed - decided against Department.

Summary

Issues:
1. Certification authority for goods in terms of edibility and acid value - PHO vs. Chemical Examiner.

Analysis:
The judgment revolves around the issue of certification authority for goods concerning their edibility and acid value. The appeals were filed by the department challenging the decision of the lower appellate authority, which held that the Public Health Officer (PHO) was the sole authority to certify the goods in terms of quantity, not the Chemical Examiner. The department argued that the PHO could only certify the edibility of the goods, not the acid value, which was crucial for determining benefits under Notification No. 21/2002. They also relied on a Tribunal decision in M/s Nikhil Refineries case. On the other hand, the respondents contended that as per Board Circular No. 58/2001, all consignments of edible/food products imported into India must be tested by PHOs, and clearance should only be granted after receiving the test reports. They referred to Tribunal decisions in their favor, emphasizing that only PHO and Central Food Laboratory (CFL) were competent authorities for testing edible oils.

Upon hearing both sides, the Tribunal analyzed the circular and found that imported edible/food products must be tested by PHOs, and clearance should be granted based on the test reports. While the PHO certificates did not specifically mention acid values, they did certify that the samples conformed to the standards under the PFA Rules, 1955. The Tribunal noted that the standards for specific edible oils, including palm oil, were clearly laid out in the rules, and the PHO certificates adequately reflected compliance with these standards. The Tribunal concluded that the lower appellate authority's decision regarding the authority of PHO and CFL in testing the edibility of goods was correct and did not warrant any interference. They distinguished the Nikhil Refineries case, where the PHO report was insufficient, from the present case, where the PHO certificates sufficed as per the Board's instructions. Consequently, all appeals filed by the department were dismissed, upholding the lower appellate authority's orders.