Seizure of Imported 'Roasted Areca Nuts' based on Contradictory Reports: CESTAT allows Customs Appeal [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh Regional Bench, allowed a Customs appeal wherein the seizure of imported “roasted areca nuts” was based on contradictory reports.

The assessee-appellant, M/s Prenda Creations Pvt Ltd, was an importer of food items and imported “roasted areca nuts” from Indonesia. The appellant was granted permission to import “Roasted Beetle Nuts” and “Roasted Areca Nuts” from the Advance Ruling.

All compliances were followed by the appellant and later when the department drew samples from the consignments, it was reported on 30.06.2025 that the goods are dried areca nuts and not roasted areca nuts. Further, as per the report of the CRCL communicated to the importer on 03.07.2025, the imported areca nuts were not fit for human consumption.

The goods were sent for re-test to NFL, Ghaziabad where they were declared fit for human consumption. However, the goods were seized given that they were not roasted as per the CRCL report.

The counsel for the appellant submitted that the determining factor to conclude whether the areca nuts are roasted or not is the moisture content being below 10% which is true as per the order of the Advanced Authority. The case of Universal Impex v. Commissioner of Customs & Ors (2024) was referred to by the counsel.

The opposing counsel submitted that the Advance Ruling passed by the Advance Ruling Authority has limited binding affect and remains so unless there is a change of law or facts. The counsel for the appellant rebutted, claiming that the CRCL report was done only through Visual Inspection and the NFL Ghaziabad report has to be given preference.

The tribunal observed that the ruling of the advanced authority has not been challenged and has attained finality. The bench credits the case of Universal Impex and held that the identical issue of roasted areca nuts which were seized by the Customs department was declared unreasonable and arbitrary.

Accordingly, the two members of CESTAT noted the regulations imposed by the FSSAI for imports and sent the samples to the nearest lab, i.e., Bali Test House where it was declared fit for human consumption. S.S. Garg (Judicial) and P. Anjani Kumar (Technical) thus allowed the appeal and directed the detained goods to be released subject to the fulfillment of conditions of provisional release order except requirement of furnishing bank guarantee.

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