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2022 (2) TMI 1131 - AT - CustomsConfiscation of goods - prohibited/restricted goods or not - import of consignment of Sajji Khar - Confiscation on the ground that as per FSSAI letter dated 19.03.2020, Sajji Khar was a non-specified product and approval under Non-Specified Food Regulations of 2017 was required - HELD THAT - There is no dispute that the appellant have been issued license being a manufacturer/importer for manufacture of sweets and papad. It is also observed that CBIC directive issued on 21.05.2020 regarding the compliance of FSS (Approval of non-specified food and food ingredients) Regulations, 2017 whereas the Bill of entry for warehousing of goods was filed on 28.12.2019 and also the import has taken place much before the instruction dated 21.05.2020. The instruction dated 21.05.2020 cannot be applied retrospectively. It is a settled law that any condition is imposed on the import shall not apply to the import already originated from the port of shipping - In the present case also the instruction dated 21.05.2020 was issued much after not only the import of goods but also after filing of warehousing Bill of entry. It is also undisputed fact that the same product i.e. Sajji Khar has been allowed to be imported without the condition as imposed by the department in the present case on the earlier occasions by various importers. The goods are not liable for confiscation - Appeal allowed - decided in favor of appellant.
Issues:
1. Confiscation of goods under Section 111(d) and imposition of penalty under Section 112(a) by the adjudicating authority. 2. Rejection of appeal by the Commissioner of Customs (Appeals) Ahmedabad. 3. Appeal against the impugned Order-in-Appeal by the appellant. 4. Interpretation of Food Safety and Standards (Approval of Non-specified Food and Food Ingredients) Regulations, 2017. 5. Application of CBIC directive dated 21.05.2020 in the case. 6. Justification of confiscation, fine, and penalty in light of legal precedents. Analysis: 1. The appellant imported Sajji Khar under a warehousing Bill of entry, certified by FSSAI. A show cause notice proposed confiscation under Section 111(d) due to non-compliance with Non-Specified Food Regulations. The adjudicating authority confiscated goods, allowed re-export on payment of redemption fine, and imposed a penalty. The appellant appealed the decision, leading to rejection by the Commissioner of Customs (Appeals). 2. The appellant argued that historical import practices and FSSAI certifications justified the import, challenging the application of CBIC Instruction dated 21.05.2020. Citing legal precedents, the appellant contended that even if re-exported, fines and penalties were unwarranted, especially considering incurred losses. 3. The revenue maintained that import without prior approval violated Food Safety Regulations, justifying confiscation and penalties. The Tribunal analyzed FSSAI clarifications, confirming that Sajji Khar did not require approval under the Regulations. The Tribunal also noted the import predating the CBIC Instruction, rendering it inapplicable retrospectively. 4. Considering the FSSAI clarifications and import certifications, the Tribunal found no fault in the appellant's compliance with relevant standards. The Tribunal emphasized that the CBIC Instruction could not be retroactively applied, especially when past imports of the same product faced no such conditions. 5. Consequently, the Tribunal set aside the impugned order, ruling in favor of the appellant and allowing the appeal with consequential relief. The judgment highlighted the importance of regulatory clarity and consistency in import procedures, safeguarding against retrospective impositions on legitimate imports.
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