Bhansali Chematics Private Limited Vs Senior Intelligence Officer (Madras High Court)
The writ petition before the Madras High Court concerned the question of whether the product imported by the petitioner, namely “vital wheat gluten”, was freely importable under a Duty Free Import Authorization dated 30.12.2024. The authorization permitted import of “wheat flour” without payment of customs duty. The respondents issued an impugned seizure notice on the ground that the authorization did not cover “vital wheat gluten”, treating it as distinct from “wheat flour”.
The petitioner contended that “vital wheat gluten” and “wheat flour” are the same for purposes of classification under the Customs Tariff Act and for availing duty-free import benefits. In support, reliance was placed on decisions of the Customs, Excise and Service Tax Appellate Tribunal and on earlier judgments of constitutional courts, including a decision of the Madras High Court, all of which had taken the view that “vital wheat gluten” and “wheat flour” are one and the same. Orders passed by the Commissioner of Customs (Appeals) and by CESTAT were also cited, where identical conclusions had been reached.
The petitioner further argued that the impugned seizure notice was issued without jurisdiction and without following due process of law. It was also submitted that Public Notice No.41/2015-2020 dated 02.11.2016 issued by the Directorate General of Foreign Trade had been suspended on 26.08.2025 through Public Notice No.20/2025-26. According to the petitioner, the suspension of the relevant Standard Input Output Norms (SIONs), which applied to food products including the goods imported by the petitioner, had not been taken into account. This, it was contended, showed total non-application of mind while issuing the seizure notice.
