L T OVERSEAS LTD Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE appellant exported basmati rice to Mauritius having assessable value of Rs. 30,37,799. However, the buyer refused to accept the rice because it was infested with insects (weevils ). Accordingly, the goods were sent back to India where they were confiscated by the customs authorities since they were found to be in violation of the provisions of the Prevention of Food Adulteration Act, 1954.

(2.) THE customs authorities also levied a penalty of Rs. 75,000 on the appellant. The confiscation and penalty was challenged by the CUSAA 1/2007 page 1 of 3.

(3.) PETITIONER and eventually the Customs, excise and Service Tax Appellate Tribunal upheld the confiscation and penalty. The appellant, by way of the present appeal, has challenged both the confiscation and pen-alty. According to the learned counsel for the appellant, when the rice was exported, it did not contain any insects and there was a certificate given to this effect by the directorate of Plant Protection, Quarantine and Storage, Government of India.