CBIC directive regarding the compliance of FSS cannot be applied retrospectively: CESTAT

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in one of its orders has said that the Central Board of Indirect Taxes and Customs (CBIC) directive was issued on 21.05.2020 regarding the compliance of FSS (Approval of non-specified food and food ingredients) Regulations, 2017 cannot be applied retrospectively.

Shri R.P.Parekh, learned Superintendent (AR) appearing on behalf of the revenue reiterates the finding of the impugned order. He referred to Food Safety and Standards (Approval of non-specified food and food ingredients) Regulations, 2017 to submit that it is mandatory to obtain a prior approval for import of any non-specified food or food ingredients therefore, in the present case import of ‘Sajji Khar’ without approval is in violation of the Regulation 3 of Food Safety and Standards (Approval of Non- specified Food and Food Ingredients) Regulation, 2017 therefore, the goods was rightly confiscated and fine and penalty was correctly imposed.

Shri Anil Balani, learned counsel and Shri Rahul Gajera, Advocate appeared on behalf of the Shri Anil Balani submitted that the import was much prior to the CBIC Instruction of 21.05.2020. The Bill of entry was filed on 28.12.2019 therefore, the CBIC Instruction dated 21.05.2020 is not applicable in respect of consignment for which the Bill of entry was filed on 28.12.2019.

Hon’ble Member (Judicial), Mr. Ramesh Nair agreed to the argument that CBIC Instruction dated 21.05.2020 is not applicable in respect of consignment for which the Bill of entry was filed on 28.12.2019. As per member, it is a settled law that any condition is imposed on the import shall not apply to the import already originated from the port of shipping.

Thus Appeal is allowed in favor of Appellant with consequential relief.

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