W.P.(C) 16560/2024 $~4 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 16560/2024 M/S PERFECT TRADING CO. .....Petitioner Through: Mr. Sambhav Jain & Mr. Pranav Raj Singh, Advs. (9899152568) versus COMMISSIONER OF CUSTOMS & ORS. .....Respondents Through: Mr. Anurag Ojha, SSC with Mr. Dipak Raj Singh, Adv. for R-1. Mr. Aditya Singla, SSC, CBIC with Mr. Ritwik Saha & Ms. Shreya Lamba, Advs for FSSAI CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE SHAIL JAIN O R D E R % 05.08.2025 1. This hearing has been done through hybrid mode. CM APPL. 35663/2025 in W.P.(C) 16560/2024 2. The present writ petition was filed, inter alia, seeking release of the consignment of ‘Roasted Areca Nuts’ (hereinafter “the subject consignment”) which had been imported by the Petitioner. 3. Vide a detailed order dated 07th May, 2025, the Court had directed provision release of the subject consignment valued approximately at Rs 33 Lakhs, in the following terms:- “11. The Court has heard the matter. The initial reports given by either the CRCL or the FSSAI do not say that the goods are not fit for human consumption. In fact, in terms of the report dated 1st October, 2024, the sample is found to be 'Roasted Areca Nuts' by the primary laboratory. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/08/2025 at 12:12:46 W.P.(C) 16560/2024 12. Thereafter, the CRCL's report dated 17th October, 2024 states that the sample is not fit for human consumption. Again, on 25th October, 2024, the parameters were held to not match with Roasted Areca Nut. These reports are in contrast with the report submitted in June/July, 2024 where the CRCL itself had stated that the issue would be of moisture content and the damaged nuts exceeds the limit prescribed by FSSAI. Finally, the report of NFL dated 16th January, 2025 states as under: "C. Conclusion : The sample of Roasted Areca Nuts Whole beating code No. IMPORT_NR_20122024_001 does not confonn to the standards laid down under Regulation No. 2.3.55 of Food Safety and Standards (Food Products Standards and Food Additives) Regulation, 2011, as the sample shows Moisture. Damaged nuts and Damaged by mould & insects above the maximum prescribed limit Sample also shows the presence of fungus hyphae & musty odour. The sample is thus substandard under section 3 (1) (zx) and unsafe under section 3 (1) (zz) (x) (xi) of FSS Act. 2006." 13. Overall, the reports are not consistent with each other. When the initial import was made, clearly, the FSSAI was of the opinion that the goods are Roasted Areca Nuts. It appears that there has been a deterioration of the product while the consignment has remained with the Customs or with the warehouse. The final report of the NFL which is the most recent report records clearly that there is some damage in the nuts caused by mould and insects and there could also be a musty odour. 14. Overall, this Court is of the opinion that the Roasted Areca Nuts have deteriorated during the entire process of repeated testing. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/08/2025 at 12:12:46 W.P.(C) 16560/2024 15. Under such circumstances, no useful purpose would be served by continuing to leave the consignment with the Customs Department as the Petitioner is willing to give an undertaking that the same would not be used for human consumption. 16. Accordingly, the consignment is provisionally released Subject to payment of a sum of Rs.5 lakhs as security with the Customs Department. The Customs Department, after provisionally releasing the goods, shall issue a Show cause notice to the Petitioner in accordance with law and adjudicate the matter. 17. Mr. Gagan Uppal, the son of the proprietor - Mr. Naresh Kumar Uppal is present in Court and undertakes to the Court that the goods would not be used for human consumption. Any violation of this shall be construed as contempt of the order of this Court and if the Customs Department or any other Department finds out that the goods are being used for human consumption, stringent action would be liable to taken. The Petitioner shall ensure that the said consignment of nuts is used for industrial purposes as has been represented to the Court. 18. The Petition is disposed of in these terms. All pending applications, if any, are also disposed of.” 4. The present application for clarification of the order dated 7th May, 2025 has been filed on behalf of the Customs Department seeking the following prayers:- “ a. Clarify on the aspect of levy of BCD/ Customs duty on goods, as projected in paragraph 6, at the time of release of goods pursuant to the judgment dated 07.05.2025 passed in Writ Petition (C) No. 16560 of 2024 and; This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/08/2025 at 12:12:46 W.P.(C) 16560/2024 b. Pass any other Order/direction this Hon'ble Court deems fit and proper in the interest of justice.” 5. The clarification which is sought is whether the sum of Rs 5 Lakhs is the only security that is to be collected by the Customs Department or is 100% of the Customs duty over the subject consignment also to be secured and paid by the Petitioner. 6. On this issue, there is no doubt after reading of the order dated 07th May, 2025 that in view of the conflicting reports which were given by different laboratories, the Court had taken a view that no useful purpose would be served in leaving the subject consignment with the Customs Department. The said view was taken especially considering the fact that the Petitioner had clearly stated that the subject consignment would be used only for industrial purposes and not for human consumption. 7. Under such circumstances, considering the deterioration of the subject consignment being Roasted Areca Nuts, during the period when they were lying with the Customs Department for repeated testing, this Court had exercised discretion and had directed provisional release subject to Rs 5 lakhs security. It is submitted by the ld. Counsel that the said amount of Rs 5 Lakhs was sought to be tendered by the Petitioner, but the same was not accepted by the Department on the ground that the clarification application is pending. 8. Moreover, in terms of the directions passed vide order dated 7th May, 2025 the Show Cause Notice is also now issued to the Petitioner on 01st July, 2025. The same would proceed in accordance with law. 9. In the opinion of this Court, the provisional release ought not to brook any further delay, considering the nature of the subject consignment. In view This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/08/2025 at 12:12:46 W.P.(C) 16560/2024 thereof let the order dated 07th May, 2025 be given effect to, as it is, without any further payment from the Petitioner. 10. The demand draft of Rs 5 Lakhs shall be deposited by the Petitioner with the Customs Department upon which the provisional release of the subject consignment shall be done. 11. The said amount shall be deposited within two working days and the subject consignment shall be released by 11th August, 2025, failing which the concerned officers shall be liable for stringent action. 12. The present application stands disposed of. PRATHIBA M. SINGH, J. SHAIL JAIN, J. AUGUST 5, 2025 sk/msh This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/08/2025 at 12:12:46