Imported Tea Found with Seeds Only after Testing, No Wilful Misdeclaration found: CESTAT Allows Appeal [Read Order]

The Customs, Excise and Service Tax AppellateTribunal ( CESTAT ), Kolkata Bench, allowed an appeal and held that only after sampling and examination it was found that the tea had seeds. CESTAT noted that there was no intent for misdeclaration.

The facts of the case are that the appellant, M/s. Newby Teas Overseas Private Limited, filed a Bill of Entry dated 16.02.2023 for importation of 10 varieties of tea. On importation, sampling of the goods was done and thereafter the Plant Quarantine Authorities reported that the goods were found to be infested/infected with a quarantine pest notified under Schedules-V and VI of the Plant Quarantine (Regulation of Import into India) Order, 2023.

The appeal filed by the appellant before the Plant Quarantine Appellate Authority failed. Hence, adjudication was taken up by the Customs authorities.

The adjudicating authority confiscated the goods imported under Section 111(d) of the Customs Act, 1962 and allowed the re-export of the goods on payment of redemption fine under Section 125, also imposing a penalty under Section 112(a)(i).

When appealed, the Commissioner (Appeals) partly allowed the appeal, setting aside the redemption fine, allowing re-export without imposition of any fine but upheld the penalty imposed.

The representative of the appellant submitted that the ‘tea’ is not prohibited and the same had been certified fit for human consumption by the Health Certificate and Phytosanitary Certificate issued by the Government of China.

Additionally, only after the Plant Quarantine authorities had drawn samples and found that the teas contain seeds or are infected, had the goods not been allowed for clearance.

The bench of K. Anpazhakan (Technical Member) found that the teas were infused with whole flowers which include viable seeds in violation of the Plant Quarantine (Regulation of Import into India) Order, 2023. However, the tea seeds were noticed only after testing by the authorities and so the Tribunal noted lack of mens rea or intention to mis-declare on the part of the appellant as they had certified the tea fit for human consumption before it was examined.

Therefore, it cannot be held that the responsibility for importation for the tea with seeds lies with the appellant. Finally, the penalty imposed under Section 112(a)(i) was set aside and the appeal was allowed.

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