KARACHI: A single bench of Sindh High Court (SHC) comprising Justice Adnan Iqbal Chaudhry allowed by setting-aside the impugned detention memo and by directing the customs officials to release the detained goods of imported betel nuts on a suit filed by M/s. Tahir Food Products
On 15 February 2022 after both sides arguments, court passed order and observed that “this order decides CMA No. 397/2022 whereby the plaintiff prays for a direction to the Defendants 3 and 4 (Directorate General, Intelligence & Investigation-Customs) to release the consignment of betel-nuts detained by the latter at a godown rented by the plaintiffs outside the Port after the consignment had been cleared by the Customs.
The facts in brief are that the plaintiff imported a consignment of 1200 bags of betel-nuts (areca nuts) from Indonesia, weighing 72,200 kgs, classified under PCT Code 0802.8000.
After payment of duties and taxes the consignment was cleared from the Port for gate out on 28.12.2021 and was stored by the Plaintiff godown near the Karachi University.
On 29.12.2021, officers of the Directorate General, Intelligence & Investigation-Customs [DG I&I] conducted a search at the said godown, allegedly on a suspicion that the betel-nuts were smuggled goods, and on the inability of the Manager of the godown to furnish import documents, the betel-nuts were detained thereat by way of a detention memo delivering superdari to the Manager of the godown until production of import documents and laboratory reports to verify that the betel-nuts were fit for human consumption.
On 04-01-2022, the Intelligence Officer, DG I&I claims to have drawn samples from the detained goods for laboratory tests.
The plaintiff therefore prays for a declaration that the detention of the betel-nuts by the DG I&I is mala fide and unlawful; for a declaration that the DG I&I have no lawful authority to take any sample for testing the betel-nuts; and for an injunction to release the said goods from detention.
On the other hand, Mr. Khalid Rajpar, learned counsel for the Defendants (DG I&I) submitted that none of the certificates produced by the Plaintiff specify the level of aflatoxin in the betelnuts imported; whereas the laboratory reports produced by the DG I&I specify the level of aflatoxin found in the betel-nuts and opine that those are unfit for human consumption.
Thus, learned counsel submitted that the betel-nuts had been imported contrary to the conditions prescribed at serial No. 5 of Part I, and serial No. 155 of Part-III, Appendix-B to the Import Policy Order, 2020; and therefore, such goods are liable to confiscation under section 17 of the Customs Act, 1969.
Having seen that the betel-nuts imported by the plaintiff fulfilled all conditions of import as prescribed in serial No.5 of Part-I and serial No.155 of Part-III, Appendix B to the Import Policy Order, 2020, the detention of such goods by the Directorate General, Intelligence & Investigation-Customs is without any legal basis.
The case of the Plaintiff meets all conditions to the grant of an injunction. Resultantly, CMA No. 397/2022 is allowed by setting-aside the impugned detention memo dated 29.12.2021 and by directing the Defendants to release the said goods forthwith”.
