Commissioner Customs Vs Hightop Trading Private Limited (Supreme Court of India)
The Supreme Court of India reaffirmed that exports are regulated primarily by the Foreign Trade Policy (FTP) and not by Food Safety and Standards Authority of India (FSSAI) norms unless such standards are expressly incorporated into the FTP. Upholding the CESTAT’s decision, the Court dismissed the Revenue’s appeal and set aside confiscation, customs duty demand, redemption fine, and penalties imposed on a rice exporter for alleged misclassification. The Court observed that while the FSSAI Act governs food safety standards for goods manufactured, processed, distributed, or sold within India, it does not independently regulate exports. In the absence of any FTP condition, statutory provision, notification, or circular mandating FSSAI compliance for basmati rice exports, enforcement of FSSAI norms was held unjustified. Since the exporter satisfied all FTP requirements under ITC HS Schedule-II, the export was lawful and customs action under Section 113 of the Customs Act lacked legal basis.
Facts:
Ms High-top Trading Private Limited (“the Appellant”) is engaged in the export of rice and registered with Agricultural and Processed Foods Products Export Development Authority (“APEDA”). The Appellant entered into a contract dated July 11, 2023, for export of 587.50 MT brown basmati rice to an overseas buyer.
