ORDER

The petitioner was registered in the trade of import of Betel Nuts and they have been allotted with Import-Export Code issued by the office of the JDGFT. The petitioner has also registered under GST and also assessed to Income Tax. The petitioner had also registered with the Food Safety and Standards Authority of India.

2. The learned counsel for the petitioner submits that they have imported

57,600.00 Kgs, 960 bags of Boiled Supari (Betel Nut product) from Myanmar vide Invoice No.013/2021, dated 19.11.2021, from M/s.Kwan Global Company limited, Myanmar. The petitioner had declared the value of the goods at USD 1.50 per Kg and totally USD 86,400.00/- (CNF) for 57,600.00 Kgs. The above goods were supplied by M/s.Kwan Global Company Limited, Myanmar. The petitioner had filed Bill of Entry No.7101263, dated 16.01.2022, for clearance of the above said goods through Tuticorin Port. They declared that the above goods are classifiable under 2106 9030. The goods are from Myanmar Origin.

3. The petitioner submitted all the necessary documents such as Commercial Invoice, Packing List, Bill of Lading, Certificate of Origin issued by the Republic of the Union of Myanmar, Fumigation Certificate and Phytosanitary Certificate issued by the Republic of the Union of Myanmar, Department of Agriculture, to the Customs.

4. The learned counsel for the petitioner submitted that the petitioner has filed Bill of Entry for Home Consumption and sought for clearance of the goods. They also claim the release of the goods under CTH 2106 9030 at Basic Duty at 50% + 10% of Social Welfare Surcharge and on payment of IGST at 18% on merit rate of duty. They had also enclosed the Insurance Certificate and Certificate of Origin issued by the Republic of Union of Myanmar, Federation of Chambers of Commerce and Industry (UMFCCI), confirming that the goods are of Myanmar origin.

5. The learned counsel for the petitioner submits that, after filing Bill of Entry, the goods were examined on 25.04.2022. Thereafter, the samples were taken from the containers and sent to FSSAI for giving report. The FSSAI report confirmed that the goods imported were fit for human consumption and issued No Objection for release of the goods. The samples were also sent for testing to the Laboratory and vide lab report, dated 02.02.2022, it confirmed that the goods imported are Boiled Supari (Betel Nut Product known as Supari) only. The classification is yet to be approved and hence, the goods are being detained from 16.01.2022.

6. After the report, if the Customs Authority felt that the goods have to be detained under Section 110-A of the Customs Act, it could have been given to the petitioner allowing them to clear the goods on payment of such security. In this case, the FSSAI report as well as the Lab report confirmed that the goods are Betel Nut Supari and fit for human consumption and it is not a prohibited or a banned item. In view of the same, the further detention of the goods is improper.

7. The learned counsel for the petitioner submits that the Betel Nut would fall under Customs Tariff Heading 2106 and Sub-Heading 21069030. He further submitted that in identical situations, the goods have been released in all major ports and ICDs, namely, Bangalore, Mundra, Nhavaseva and other places. He further submitted that even in the month of February 2022, many containers were released in Chennai on the same issue with regard to Betel Nut. The petitioner's goods were not released from 16.01.2022, which had caused great loss not only to the petitioner to pay demurrage charges but also to other sources from whom he had received money for trade and the interest rate is also mounting.

8. The learned counsel for the petitioner submitted that already CBEC, Ministry of Finance has also issued Circular in Circular No.22/2004-Customs, dated 03.03.2004, directing the authorities that in the matter of classification disputes, the consignment should be allowed to be cleared on provisional basis as a m