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2019 (10) TMI 20 - HC - CustomsSmuggling - Release of seized goods - Betel nuts - perishable goods - third country/foreign origin goods - 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 - This Court has taken note of the two reports as stated in paragraph 8 and 9 of the counter affidavit of the respondents. The samples of Arecanuts are of very bad qualities and more than 50% of the nuts are infected with moulds inside. The petitioner no. 1 is, therefore, unable to make out a case for a direction to release the betel-nuts. The prayer as regards release is, thus, refused. 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.
Issues Involved:
1. Legality of the seizure of betel nuts and the truck. 2. Determination of the country of origin of the betel nuts. 3. Compliance with food safety standards. 4. Provisional release of the seized goods. 5. Release of the seized vehicle. Detailed Analysis: 1. Legality of the Seizure of Betel Nuts and the Truck: The petitioner challenged the seizure of 23,660 kgs of betel nuts and a truck, arguing that the customs officials had no valid reason to believe the goods were smuggled or liable for confiscation under the Customs Act, 1962. The petitioner contended that the seizure was based on an unsubstantiated belief that the goods were of foreign origin, without specifying the country of origin. The seizure was made under Notification No. 09/1996-Cus (NT) dated 22.01.1996, which prohibits the import of goods from Nepal that were exported to Nepal from another country. The petitioner argued that the customs officials did not follow proper procedures, including recording the internal information in Form DRI-1 and verifying its authenticity. 2. Determination of the Country of Origin of the Betel Nuts: The petitioner argued that the customs officials' description of the betel nuts as being of "Malaysian" origin based on their appearance was incorrect and baseless. The samples sent to Arecanut Research & Development Foundation (ARDF) and Central Food Laboratory (CFL) failed to determine the country of origin. The court noted that the respondents were still investigating the country of origin and that the test reports did not conclusively establish the origin of the betel nuts. 3. Compliance with Food Safety Standards: The respondents argued that the seized betel nuts were found to be unsafe for human consumption based on test reports from ARDF and CFL, which indicated the presence of fungal growth, damaged betel nuts, and insects. The petitioner contended that the customs officials were not authorized as Food Safety Officers under the Food Safety and Standards Act, 2006, and did not follow the proper procedures for taking samples. The court referred to Circular No. 03 of 2011, which allows customs officers to get samples tested from authorized laboratories and emphasized the importance of ensuring compliance with food safety standards. 4. Provisional Release of the Seized Goods: The petitioner requested the provisional release of the seized betel nuts, which was denied by the respondents based on the test reports indicating the nuts were unsafe for human consumption. The court referred to the guidelines for provisional release under Circular No. 35 of 2017, which prohibits the release of goods that do not fulfill statutory compliance requirements. The court upheld the respondents' decision to deny provisional release, citing the unsafe nature of the betel nuts. 5. Release of the Seized Vehicle: The court allowed petitioner no. 2 to make an appropriate application for the release of the seized vehicle. The competent authority was directed to consider the application and pass an appropriate order within 30 days. Conclusion: The court dismissed the writ application, finding no reason to interfere with the seizure of the betel nuts and the truck. The court upheld the respondents' actions based on the test reports indicating the betel nuts were unsafe for human consumption and emphasized the importance of complying with food safety standards. The court allowed the petitioner to apply for the release of the seized vehicle, which the competent authority was directed to consider within 30 days.
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