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2015 (7) TMI 1097

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..... gard, the petitioner purchased the subject goods from Al Nour for Dairy Industries, Egypt, who is engaged in the business of producing processed cheese under the supervision of the veterinary and exports the processed products to other countries. Section 3A of the Livestock Importation Act provides that the central government may by notification restrict the import of any live stock product which may affect the human or animal health. The term 'Livestock Products' has been defined to inter alia include milk and milk products. Vide notification S.O. 655 (E) dated July 7, 2001, the Department of Animal Husbandry, Dairying and Fisheries (hereinafter referred to as 'DADF') has imposed certain restrictions on import of inter alia milk and milk products. Pursuant to the notification, import of milk and milk products is allowed only against a sanitary import permit issued by the DADF and after following the applicable procedure. A similar condition has also been provided in the Notification No. 18(RE-2013)/2009-14 dated June 11, 2013 issued by the Directorate General of Foreign Trade. The Livestock Import Notification also specifies the procedure pursuant to which the sanitary import perm .....

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..... Consequently, the petitioner paid the applicable Customs Duty of Rs. 7,28,081/- on 25.09.2014. On 10.11.2014, the representative of the petitioner approached the office of respondent No.4 for issuance of the NOC. However, the petitioner was surprised when the concerned officer expressed inability to release the subject goods consignment and issue a NOC for want of Sanitary Certificate in the prescribed format. The representatives of the petitioner deliberated with the concerned officers and highlighted the fact that the subject goods are perishable in nature and the raw material that was used by the Egyptian exporter was of Indian origin. Relevant documents in this regard were also produced, however, the concerned officer still refused to issue the NOC. The petitioner even wrote a letter dated 28.11.2014 with the offices of respondent No.2, 3 and 4 reiterating the fact that all details that were required in the prescribed format were present in the sanitary certificate issued by the veterinary authority in Egypt. After repeated meetings/discussions and follow ups with respondent No.4 on numerous occasions, the representative of the petitioner was informed that the DADF had sought a .....

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..... declaration that the subject goods 'may be allowed' as per the sanitary conditions contained in the sanitary certificate attached to the Import Permit. Therefore, no question arises as to issuance of the sanitary certificate in a particular format. 6. It is further contended by the learned counsel for the petitioner that the sanitary certificate clearly certifies that the subject goods were produced under thermal conditions using UHT technology at 142 degree Celsius and no fresh milk was used in its preparation; the subject goods were sampled and found to be free from diseases and fit for human consumptions; the imported subject goods (including skimmed milk powder of Indian origin) are free from diseases and the ingredients were cleared for consumption in Egypt only after analysis at the port of arrival. It was confirmed that the milk powder from India had been examined and found fit for preparation of the cheese. The sanitary certificate was also accompanied by a health certificate issued with respect to the factory where the subject goods were produced. Therefore, it is evident that the subject goods met the requirements set out in the Import Permit read with the sanitary cert .....

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..... t of livestock products are regulated under Section 3A of the Livestock Importation Act, 1898. Under this Act an importer of livestock products requires sanitary import permit (hereinafter referred to as 'SIP') issued by the department of animal husbandry, dairying and fisheries. In this regard department had issued notification vide S.O. 655 (E) dated 07.07.2001 which has been further amended vide S.O. 2666 (E) dated 17.10.2014. The SIP needs to be issued by the official veterinarian of the exporting country complying with India's requirements listed in the sanitary certificate attached with the SIP. Egypt is a beef eating country; therefore, there is every possibility of using animal rennet in the coagulation process of cheese. The animal rennet clause has not been certified which is a violation of FSSAI regulation also. The Department of animal husbandry dairying and fisheries (for short ‗the department') took the matter with Indian Embassy in Cairo with the request to approach the Egyptian veterinary authority to verify India's health certificate so that the consignment can be released. The Indian embassy in Cairo has forwarded a letter of Dr. Sayed Gad EL-Mowla, Head of .....

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..... has to be certified by the exporting country meeting the sanitary requirement prescribed in the SIP stating that the product conforms to India's requirement. Hence, the requirement of SIP and the requirement of FSSAI are different and separate. To clear the imported product of animal origin, clearance from both the animal quarantine and FSSAI are required. 11. It was also contended by the learned counsel for the respondents that the FSSAI Act does not supersede the Livestock Importation Act, 1898. The FSSAI is mandated for import clearance from the domestic standard requirement after the products entered into India. The FSSAI Act does not supersede the Livestock Importation Act. FSSAI is mandated for the import clearance from the domestic standard requirement after the products entered in India. Prior to the shipment from the foreign port, the consignment has to be certified by the exporting country meeting the sanitary requirements prescribed in the SIP stating that the product confirms to India's requirement. The petitioner is in violation of Section 25(1) (ii) & 25 (1) (iii) of the FSSAI Act which states, "No person shall import to India any article of food for the import of .....

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..... acts have been enacted for ensuring the security and precautionary measures to be ordained while importing goods into India. Before adverting to the facts of the case this court considers it important to reproduce the relevant provisions of these Acts. Section 25 of the FSSA reads as under: "25. All imports of articles of food to be subject to this Act.- (1) No person shall import into India -  (i) any unsafe or misbranded or sub-standard food or food containing extraneous matter; (ii) any article of food for the import of which a licence is required under any Act or rules or regulations, except in accordance with the conditions of the licence; and (iii) any article of food in contravention of any other provision of this Act or of any rule or regulation made thereunder or any other Act. (2) The Central Government Shall, while prohibiting, restricting or otherwise regulating import of articles of food under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992), follow the standards laid down by the Food Authority under the provisions of this Act and the rules and regulations made thereunder." 17. Further, Section 3A of the LiveStock Importation .....

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..... p;                                                     xxx                                                                        xxx 7. "Non- Vegetarian Food" means an article of food which contains whole or part of any animal including birds, fresh water or marine animals or eggs or products of any animal origin, but excluding milk or milk products, as an ingredient; 11. "Vegetarian Food" means any article of Food other than Non- Vegetarian Food as defined in regulation 1.2.1 (7). xxx                 .....

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..... l amount of investment in the subject goods which will in turn heavily impact the petitioner financially and would lead to wastage of the subject goods. However, such goods cannot be allowed inside the country for the prime reason that they may or may not contain animal rennet that might impact the spiritual vegetarian beliefs and sentiments strictly adhered to in our country. Therefore, if this Court does not reach a conclusion that draws a line between prayers of both the parties, the purpose of ends of justice would not be served which is what the law seeks to achieve. A pragmatic approach would meet the ends of justice and provide the petitioner with an efficacious remedy as well as settle the dispute of the respondents. 23. It is a contention of the respondents that the concerned department has asked the petitioner to submit the test reports and animal rennet certification conducted by the Egyptian authority so that the department can examine and take a considerate view, but the petitioner has failed to oblige. Since it has been confirmed now that the Egyptian authorities will not issue the health certificate as per the Indian requirement for this particular consignment, this .....

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