Aadrikaa Legal Services (ALS) – IDT Tax I Arbitration I Litigation
Date: 07.05.2026
Bombay High Court Quashing Customs Seizure and Upholding FSSAI Certification in Roasted Areca Nuts Import Dispute
This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .
In a landmark judgment, the Bombay High Court ruled in favor of NBG International Private Limited, an importer of roasted areca nuts, quashing the customs authorities’ seizure and detention of their goods. The case highlights the primacy of statutory food safety authorities and sets important precedents for importers and regulatory bodies.
Background of the Case
NBG International imported roasted areca nuts in January 2026, filing two Bills of Entry for customs clearance. The goods underwent rigorous testing by the Food Safety and Standards Authority of India (FSSAI), which issued No Objection Certificates (NOCs) confirming the nuts were fit for human consumption. Despite this, customs authorities seized the consignments, demanded a bank guarantee, and required an undertaking that the goods would not be used for human consumption, citing concerns raised by the Central Revenue Control Laboratory (CRCL).
Legal Challenge and Arguments
The importer challenged the seizure and conditions in the Bombay High Court, arguing:
- FSSAI Certification Should Prevail: Once FSSAI, a statutory authority, certifies goods as safe, customs cannot arbitrarily disregard its findings.
- Arbitrary Actions by Customs: Customs’ insistence on re-testing and imposing restrictive conditions lacked legal authority and ignored credible FSSAI reports.
- Compliance with Food Safety Regulations: The goods met all standards under Regulation 14(a) of the Food Safety and Standards (Import) Regulations 2017.
- Proportionality: Minor defects in a small portion of agricultural goods should not justify seizure of the entire consignment.
Court’s Reasoning and Legal Principles
The Court examined the facts, regulatory framework, and previous judgments, including the Make Index Impex case. Key legal principles applied included:
- Statutory Authority of FSSAI: FSSAI’s certification is binding unless credible evidence proves otherwise.
- Non-Arbitrariness: Administrative actions must be reasonable and based on sound legal authority.
- Food Safety and Public Health: FSSAI must maintain strict standards, and only goods meeting edible standards should be released for human consumption.
- Proportionality: Damaged goods must be removed, but the entire consignment cannot be rejected based on minimal defects.
The Court’s Verdict
The Bombay High Court quashed the seizure memo and the order requiring a bank guarantee and ‘no use for human consumption’ undertaking. The Court ordered:
- Release of Goods: Roasted areca nuts to be released upon payment of appropriate duty.
- Cleaning and Certification: Damaged goods to be removed under FSSAI supervision, and only goods certified as edible to be sold for human consumption.
- No Arbitrary Conditions: Customs cannot insist on security deposits or restrictive undertakings when FSSAI certification is present.
Implications for Importers and Regulators
This judgment reinforces the authority of FSSAI and protects importers from arbitrary customs actions. It ensures that food safety standards are maintained without unnecessary hurdles, balancing public health concerns with fair trade practices.
Conclusion
The Bombay High Court’s decision is a significant victory for importers and sets a clear precedent for the role of statutory food safety authorities. It underscores the importance of non-arbitrary, legally sound administrative actions and the need for rigorous food safety certification.
Source: Bombay High Court
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