Court directs immediate release of goods after FSSAI issues No Objection Certificate, reaffirming authority of food safety certification over customs reclassification demands.
In a significant ruling dated August 31, 2026, the Bombay High Court (Division Bench) decisively held that the Customs Department cannot demand additional security deposits or bank guarantees for the provisional release of imported food goods once the Food Safety and Standards Authority of India (FSSAI) has certified their conformity under the Food Safety and Standards Act, 2006. The judgment came in the writ petition filed by Shivshakti Enterprises challenging a seizure memo and subsequent order by the Customs authorities that demanded a bank guarantee of Rs. 40,00,000 for the release of two consignments of Roasted Arecanuts (Beetle Nuts) imported by the petitioner.
Background:
Shivshakti Enterprises had imported two consignments of Roasted Arecanuts in March 2026. Samples were sent to FSSAI for testing, which issued a No Objection Certificate (NOC) on April 10, 2026, confirming that the goods complied with the prescribed food safety standards. Despite this certification, the Customs authorities detained the goods, citing concerns over tariff classification and demanding a bank guarantee for provisional release. The petitioner challenged this demand before the Bombay High Court.
Key Legal Issues:
The central question before the Court was whether the Customs Department could override the findings of the FSSAI, a specialized statutory authority responsible for food safety, and impose additional conditions such as security deposits or bank guarantees for the release of imported food goods that have already been certified as compliant.
Judgment Highlights:
The Court relied heavily on its earlier ruling in NBG International Private Limited v. The Union of India (2026), which had set a precedent that once the FSSAI certifies imported food products as conforming to safety standards, the Customs Department cannot question the classification or impose further conditions for release.
The Court observed that the FSSAI's laboratory analysis procedures are transparent, conducted by NABL-accredited labs, and completed within five days of receipt of samples. The test results and certification issued by FSSAI are conclusive for food safety compliance, leaving no scope for Customs to demand reassessment or additional financial securities.
Further, the Court noted that the Customs Department's jurisdiction concerning tariff classification does not extend to overriding the food safety certification issued by FSSAI. The impugned seizure memo dated May 19, 2026, and the order dated June 22, 2026, demanding a bank guarantee were therefore quashed.
The Court directed the immediate release of the goods without insisting on any bank guarantee, while also advising the petitioner to obtain a fresh Certificate of Fitness from the FSSAI before marketing the goods, considering the time elapsed since import.
Impact and Significance:
This judgment reinforces the primacy of FSSAI's certification in matters relating to imported food safety and streamlines the clearance process by preventing redundant and burdensome demands by Customs authorities. It provides clarity and relief to importers, preventing undue delays and financial burdens on compliant goods.
The ruling also aligns with decisions from other High Courts, including Calcutta, Punjab and Haryana, and Madras High Courts, which have upheld similar principles, thereby establishing a uniform approach across jurisdictions.
Advocates involved:
Senior Advocate Mr. Darius Shroff, along with his team, represented the petitioner, while Mr. Jitendra B. Mishra and colleagues appeared for the Customs respondents.
The Bombay High Court's decision underscores the importance of respecting specialized statutory authorities' certifications and ensures that regulatory overlaps do not hinder legitimate trade and commerce.
Bottom Line:
Customs - Provisional release of imported goods - Once a No Objection Certificate (NOC) is issued by the Food Safety and Standards Authority of India (FSSAI) certifying conformity under the Food Safety and Standards Act, 2006, the Customs Department cannot insist on reclassification or impose additional conditions such as demanding a bank guarantee for provisional release of goods.
Statutory provision(s): Customs Act, 1962, Food Safety and Standards Act, 2006, Customs Tariff Act, 1975
Shivshakti Enterprises v. Commissioner of Customs, (Bombay)(DB) : Law Finder Doc Id # 2972010
