9911796707
TMI Blog2006 (5) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... f Entry and warehoused the goods. Before discharge of the cargo into bonded warehouse, samples were taken. According to the test report dated 10-8-2005 from the supplier, the goods are free from rancidity . The test report dated 10-8-2005 issued by the independent Surveyors also indicated that the goods are free from rancidity . The Port Health Officer (PHO), Kakinada Port in his report dated 18-8-2005 certified that the goods are fit for human consumption and not adulterated. Out of 992.215 MTs of goods imported, 450 MTs were cleared. When the appellants wanted to clear the balance quantity, problems cropped up because the Chemical Examiner, Visakhapatnam in his report dated 30-8-2005 stated that the RBD Palmolein is rancid. When the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed and for the balance, redemption fine of Rs. 5,50,000/- was imposed. Penalty of Rs. 2,00,000/- was imposed under Section 112 (a) of the Customs Act, 1962. Further penalty of Rs. 20,000/- was imposed on Shri M. Pothuluriyya, Authorised Signatory. The appellants strongly challenge the impugned order. 3. Shri Mohan Rao, the learned Advocate appeared for the appellants and Shri Ganesh Havanur, the learned SDR for the Revenue. 4. The learned Advocate urged the following points:- (i) According to CBEC Circular No. 58/2001, dated 25-10-2001 and 85/2003, dated 24-9-2003 imported edible oil has to be released based on test report of the authority under the PFA Act and not Customs Laboratory. He relied on the decision of this Bench in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate more than eight red units. That being so, the Respondent has gravely erred in holding that the goods are adulterated and prohibited for import. (vii)DGHS Manual has prescribed three tests for determining rancidity, namely Kries Test, Test for Peroxide Value and Ultra Violet Absorption Test. The CRCL conducted only Kries Test. The CFL, Calcutta conducted both Kries Test and Peroxide Value Test. The overseas inspection agency certified the quality of the goods. Therefore, the adjudicating authority has gravely erred in relying on the test report of CRCL. (viii) Rancidity does not render the goods adulterated or prohibited for import since the same is not a standard prescribed for the said goods making it adulterated or unfit for human ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of PFA, 1954 and the Rules made thereunder. The Prevention of Food Adulteration Act was enacted on 29 September 1954. It came into effect on 1st June 1955. In 1937, a Committee appointed by the Central Advisory Board of Health, (CABH) advised Central legislation for the Prevention of Adulteration of food-stuffs. Consequently, the Adulteration of food-stuffs was included in the Concurrent List of the Constitution of India. Hence the Central legislation was enacted. In the statement of objects and reasons, while introducing the relevant Bill, it was stated :- The Bill replaces all local food adulteration laws where they exist and also applies to those States where there are no local laws in the subject. Among others, it provides for - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1954. This Tribunal in the case of Ruchi Infrastructure Ltd. (supra) has held that when the Port Officers has clearly mentioned that Palmolein sample conform to the standards laid down under the PFA Rules, it is not necessary to go with the test result of Central Revenue Control Laboratory. Reliance was placed on Board s Circular No 85/2003./, dated 24-9-2003. The adjudicating authority has raised a question that there are no instructions as to the course of action to be taken when the test results of Chemical Examiner and CRCL are in conflict with the test results of PHO and CFL. When the statutory authorities, i.e. the Port Health Officer (PHO) and CFL have certified that the impugned goods conformed to the standards of PFA Act and Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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