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2022 (12) TMI 778 - HC - CustomsSeizure of imported goods (to be cleared for home consumption) - Fresh Kiwi Fruits - seizure on the alleged premise that the Country-of-Origin certificates submitted by the petitioner are of suspicious nature and they are not co-relating with the documents submitted with the bill of entry - HELD THAT - Section 1A of Section 110 of the Customs Act provides that the Central Government may, having regard to the perishable or hazardous nature of any goods, shall, as soon as may be after its seizure under sub-section (1), dispose of by the proper officer in such manner as the Central Government may, from time to time, determine after following the procedure prescribed in the said provision - Sub-section (2) of Section 110 of the Customs Act provides that any goods which are seized under sub-section (1) and no notice in respect thereof is given under clause (a) of section 124 within shall be returned to the person from whose possession they were seized within six months of the seizure of the goods and the principal commissioner also has power to extend such period of further time not exceeding six months. Admittedly, this is perishable nature of the goods and therefore, Sub-section (1A) of Section 110 of the Customs Act obligates upon the officer concerned to decide in this relation as soon as possible after its seizure - Noticing the right of the authority concerned as also the balancing it from the point of view of the perishable goods which are required to be decided earliest possible, we deem it appropriate to provisionally release the same. Once the Bank Guarantee is furnished of the requisite amount as above, the goods shall be provisionally released in favour of the petitioner. We would like to direct at this stage that the respondent No.2 shall ensure that the inquiry is concluded within a period of twelve weeks from today. If for any good reason or if the respondent No.2 has some information as regards the origin of the goods and need some more time, then it shall be open for the respondent No.2 to file an appropriate application seeking extension of time period to complete the inquiry. The writ petition is disposed off.
Issues Involved:
1. Legality of the seizure of Fresh Kiwi Fruits. 2. Validity of the Country-of-Origin certificates. 3. Compliance with Foreign Trade Policy and FSSAI regulations. 4. Provisional release of perishable goods. Detailed Analysis: 1. Legality of the Seizure of Fresh Kiwi Fruits: The petitioner, a proprietary concern importing Fresh Kiwi Fruits, challenged the seizure memo dated 15.11.2022 issued by the respondent No.4 under four bills of entries. The seizure was based on the suspicion that the Country-of-Origin certificates were not correlating with the documents submitted with the bill of entry. The petitioner argued that the import of Fresh Kiwi Fruits from Chile and Dubai was not restricted under the Foreign Trade Policy 2015-20 and the Foreign Trade (Development and Regulation) Act, 1992. The court noted that the Customs Officer has the authority under Section 110 of the Customs Act to seize goods if there is reason to believe they are liable to confiscation. The court emphasized the duty of officers to inquire into the details of Phytosanitary certificates, especially when there is a specific bar on Iranian Kiwi imports. 2. Validity of the Country-of-Origin Certificates: The petitioner claimed that the imported goods were from Chile, as evidenced by the Phytosanitary certificates. The respondent's affidavit suggested that the National Custom Targeting Centre (NCTC) had flagged the consignment, suspecting it to be of Iranian origin, which is prohibited in India since December 2021. The court acknowledged the respondent's suspicion, noting that the same Phytosanitary certificates were used by different importers, raising doubts about their authenticity. The court highlighted the necessity for a thorough examination of these certificates, given the potential use of forged documents. 3. Compliance with Foreign Trade Policy and FSSAI Regulations: The petitioner argued that the import of Fresh Kiwi Fruits is classified under HSN 08105000 and is freely importable as per the Import Policy 2015-20. The import is regulated by the Food Safety and Standards Act, 2006 (FSSAI), which mandates that no person can import food articles in contravention of the Act and its regulations. The court noted that the Customs Officer is delegated to perform functions under the Food Safety Law where FSSAI does not have an officer. The court recognized the compliance requirements under FSSAI and the role of the Customs Officer in enforcing these regulations. 4. Provisional Release of Perishable Goods: Considering the perishable nature of the goods, the court deemed it appropriate to provisionally release the consignment. The court referred to Sub-section (1A) of Section 110 of the Customs Act, which obligates the officer to decide on the disposal of perishable goods as soon as possible after seizure. The court balanced the authority's right to investigate with the need to prevent the perishable goods from deteriorating. The court ordered the provisional release of the goods upon the petitioner furnishing a Bank Guarantee of Rs.10 Lakh, an undertaking by the Managing Director, and a bond for the differential duty. Final Directions: The court directed the respondent No.2 to conclude the inquiry within twelve weeks, allowing for an extension if necessary, subject to court approval. The petition was disposed of with these directions, ensuring that the perishable goods would not suffer due to prolonged legal procedures. The court also permitted direct service through e-mode on the official email address for expediency. This comprehensive analysis covers the legality of the seizure, the validity of the certificates, compliance with trade policies, and the provisional release of perishable goods, ensuring a balanced approach to the issues presented.
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