Sai Surya Enterprises vs. The State Of A.P

WP/955/2022HC Andhra PradeshGSTCNR APHC01000906202214 September 2022Bench: M.GANGA RAO11 pages
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Held

The Court held that the seized article, cashew husk or cashew peel, is not a 'food' item as defined under Section 3(1)(j) of the Food Safety and Standards Act, 2006, nor is it an 'adulterant' as defined under Section 3(1)(a) of the Act. The Court found that while it might be used in the process of preparing adulterated tea powder, the seized article itself was not adulterated and was not a food item meant for human consumption. The Court noted that the petitioner is not a dealer in food items and exclusively deals in cashew husk/peel for general sale for various industrial purposes. The Court relied on precedents from the Madras High Court and the Supreme Court regarding the definition of 'food' and the seizure of products not directly involved in adulteration at the place of adulteration. The Court concluded that the seizure was illegal and arbitrary. The Court directed the respondent authorities to release the seized stock to the petitioner forthwith.

Facts

The petitioner filed a writ petition challenging the seizure of 60 tonnes/1600 bags of cashew husk from his godown on December 20, 2021, by respondents 3 and 4. The seizure occurred following a raid on another premises where adulterated tea powder was found, and a confessional statement implicated the petitioner in supplying cashew husk powder for its manufacture. The petitioner contends that cashew husk/peel is not a 'food' item under the Food Safety and Standards Act, 2006, nor is it an 'adulterant' or 'extraneous matter' as defined. He asserts he conducts a legitimate business in cashew husk for industrial purposes and has a GST TIN. The respondents argue that the cashew husk powder was supplied by the petitioner for manufacturing spurious tea powder for human consumption, and its seizure was justified under Section 38 and Section 41 of the Act, citing definitions of 'food' and 'processing aid'.

Key Issues

1. Whether cashew husk/cashew nut peel, seized from the petitioner's godown, constitutes 'food' as defined under Section 3(1)(j) of the Food Safety and Standards Act, 2006? The petitioner argues it is not 'food' as it's not meant for human consumption and is used for industrial purposes. The respondents contend it falls under the definition of 'food' or 'processing aid' and is used in the preparation of adulterated tea powder for human consumption. 2. Whether the seized cashew husk/cashew nut peel is an 'adulterant' as defined under Section 3(1)(a) of the Food Safety and Standards Act, 2006? The petitioner argues it is not an 'adulterant' as it's not used for the preparation of food items in the manner contemplated by the Act. The respondents maintain that its use in manufacturing spurious tea powder makes it an adulterant. 3. Whether the seizure of cashew husk/cashew nut peel from the petitioner's godown was illegal and arbitrary, violating Article 19 of the Constitution of India? The petitioner asserts the seizure is illegal as the product is not a food item or adulterant. The respondents justify the seizure based on the confessional statement and the suspected use of the product in adulterating tea powder.

Sections Cited

Section 3(1)(j), Section 3(1)(a), Section 38(6), Section 19, Section 41, Section 3(1)(k), Section 3(1)(zk), Section 3(1)(zm), Section 16(1), Section 100

AI-generated summary — verify with the full judgment below

THE HON’BLE SRI JUSTICE M.GANGA RAO WRIT PETITION No.955 OF 2022

ORDER: This writ petition is filed to issue a Writ of Mandamus declaring the action of the respondents 3 and 4 in seizing the Cashew husk of 60 Tonnes/1600 bags on 20.12.2021 from the petitioner’s godown bearing Door No.2-10 situated in Duppalapudi Village, Anaparthy Mandal, East Godavari District, as illegal and arbitrary.

2.

On 20.12.2021 at about 2.00 p.m., the Additional District Food Safety Officer and the Food Inspector along with In-charge Sub-Inspector of Anaparthy and others came to his premises/godown and seized 1600 bags/60 tonnes of cashew husk powder, took sample in a quantity of 4 Kgs. from out of 1 bag weighing 40 Kgs. The proceedings were recorded under mediatornama. The godown was locked and sealed by the Food Officers in the presence of mediators and handed over the seized stock to the Deputy Tahsildar and informed the godown In-charge to see that the stock is kept in the same condition.

3.

The case of the petitioner is that the Station House Officer of Bikkavolu P.S. raided the premises bearing No.4-139, Rajya Lakshmi Rice Mill of R.S.Peta of Bikkavolu at abou

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