N K PROTEINS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE learned advocate for the petitioner has tendered a draft amendment. THE amendment is allowed in terms of the draft. THE same shall be carried out forthwith.

(2.) RULE. Mr. R. J. Oza, learned Senior Standing Counsel, waives service of notice of rule on behalf of the respondents.

(3.) THE facts of the case as appearing in the petition are that the petitioner company in the regular course of its business, entered into a contract with M/s PEC Limited for the purchase of 5,000 MT +/- 2% Cottonseed Oil of Edible Grade (fit for human consumption after further refining) on high seas sale basis. On arrival of the cargo at Kandla Port, the petitioner company filed Bill of Entry No.000198 dated 6.8.2010. Since the cargo was not being released, the petitioner furnished a PD bond for provisional assessment and release of the goods in question. THE petitioner, in its letter dated 4.9.2010 addressed to the Customs Department, stated that after the cargo is released, the same would be refined at its factory under the custody of the Central Excise authorities. THE petitioner also undertook that after confirmation of test results of samples, which would be forwarded subsequent to the refining, to the effect that the same meets with standards laid down under the PFA, the goods in question would be released for human consumption. THE Bill of Entry filed by the petitioner was assessed provisionally pending the test reports for confirmation from the Central Excise as per PFA standards on 13.9.2010. THEreafter, the petitioner company requested the Customs Department to allow refining of the goods at its plants. Subsequently, the petitioner company received a copy of a letter dated 16.9.2010 addressed by the Assistant Commissioner (Group-1), Kandla, to the concerned Central Excise authorities, where the plants of the petitioner are situated. In the said letter, a reference to the test report given by the Port Health Officer, Kandla, on the samples drawn had been made in the following terms: PHK/E/131 to 134/2010 DOES NOT CONFORM to the standards and provisions as laid down under the Prevention of the Food Adulteration Rules, 1955, for Cottonseed Oil on account of Acid Value of 0.65% (0.5). On discussion with the Chief Technical Officer, CFL, Pune, the oil can be used for human consumption, only after proper and thorough cleaning, refining and conforming to the standards as laid under the item A-17 15 of PFA Rules, 1955, during this period the cargo must be under the custody of the Customs and Central excise. On completion of the refining, a sample has to be sent for analysis and on conformation to the PFA standards, the cargo must be released for human consumption.