Bombay High Court Directs Re-testing of Seized Cashew Nuts to Uphold Trade Facilitation
Customs Authorities Ordered to Draw Fresh Samples for Testing at Central Revenues Control Laboratory, New Delhi
In a significant judgment aimed at reinforcing trade facilitation measures, the Bombay High Court has directed customs authorities to allow the re-testing of seized cashew nuts, emphasizing the Government of India's policy of 'ease of doing business.' The court, presided over by Justices M.S. Sonak and Advait M. Sethna, has ordered the customs officials to draw fresh samples and send them for re-testing at the Central Revenues Control Laboratory in New Delhi.
This decision comes after the petitioner, Shri Vyom Dipesh Raichanna, challenged the customs authorities' refusal to conduct a re-test on seized goods, which were previously tested with differing results at laboratories in Maharashtra and Kerala. The petitioner argued that the samples should be re-tested as a trade facilitation measure, per the guidelines set forth in a public notice dated July 28, 2017.
The customs authorities opposed the re-testing, citing procedural lapses and the timing of the request. However, the court dismissed these objections, asserting that the guidelines for re-testing are designed to facilitate trade and should not be denied without reasonable grounds. The court observed that the resistance from the customs authorities was inconsistent with the spirit of the guidelines and the broader policy of easing business operations.
The court directed that fresh samples be drawn in the presence of the petitioner's representative and sent to the government-run laboratory in New Delhi for a comprehensive evaluation. This step, the court noted, would assist in the fair adjudication of the matter and help determine if the seized cashews were indeed roasted, as claimed by the petitioner.
The judgment underscores the judiciary's role in supporting governmental policies that aim to streamline business processes and reduce bureaucratic hindrances. By emphasizing the importance of adhering to facilitative measures, the court has set a precedent for how trade-related disputes should be handled, aligning with the national agenda of promoting business ease.
Bottom Line:
Customs - Re-testing of seized goods - Facility of re-testing is a trade facilitation measure under Public Notice dated 28 July 2017 and should not be denied in the ordinary course unless exceptional circumstances exist - Customs authorities directed to allow re-testing by drawing fresh samples from seized goods.
Statutory provision(s): Customs Act, 1962
The court's decision has been welcomed by trade stakeholders as a positive step toward ensuring that procedural technicalities do not obstruct legitimate business operations. The case highlights the critical balance between regulatory compliance and facilitating trade, reinforcing the need for government departments to act in harmony with established policies aimed at improving the business environment in India.
Shri Vyom Dipesh Raichanna v. Union of India, (Bombay)(DB) : Law Finder Doc Id # 2778738
