Unik Traders Vs Commissioner of Customs (Madras High Court)
Madras High Court held that when the moisture content is below 10%, the same is to be considered only to be a roasted areca nut thus writ petition is disposed of with direction to the department to release the goods.
Facts- During the course of their business, 19 Bills of Entry were filed by the petitioner for clearance of roasted areca nuts, which were refused to be released by the respondents on the purported misclassification of the goods, which, according to the petitioner, is classifiable under CTH 20081920. The classification was subsequently amended as CTH 20081991. Out of the total 29 Bills of Entry, which were originally filed, based on the report given by the Food Safety Authority, 10 Bills of Entry were cleared without any hitch and in so far as the remaining 19 Bills of Entry are concerned, 13 have not been cleared in spite of receipt of the report; for four Bills of Entry, even samples were not drawn and not cleared; and the remaining two Bills of Entry were not cleared for different reasons. Hence, the petitioner is before this Court.
Conclusion- Held that the consignment that has been imported has a moisture content below 10% as per the law as it stands today, it can be considered only to be a roasted areca nut. The goods that have been imported cannot be treated as prohibited goods since the relevant Notification dated 02.4.2025 has already been stayed by this Court. Under such circumstances, the goods cannot be permitted to lie in some godown since they will perish. In any case, already, 10 consignments have been released based on the same FSSAI report. This Court is of the considered view that no prejudice will be caused if the remaining consignments except two are also directed to be released, however, subject to conditions.
