The Punjab and Haryana High Court has directed the release of imported roasted areca nuts belonging to M/s. Prenda Creations Pvt. Ltd., Ludhiana, after a dispute arose over whether the goods were actually roasted or merely dried areca nuts.
A Division Bench comprising Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor passed the order on August 17, 2026, in three connected writ petitions. The Court, however, made it clear that it was not deciding the final classification of the imported goods or the customs duty payable on them.
Background of the Case
According to the order, Prenda Creations had imported roasted areca nuts from Indonesia and was willing to pay the applicable customs duty. The Customs authorities, however, relied upon a Central Revenue Control Laboratory (CRCL), New Delhi report to take the position that the products were dried rather than roasted areca nuts.
The dispute resulted in the consignments remaining in a Customs bonded warehouse from November 2024 onwards.
The CRCL report recorded a moisture content of 2.37 per cent and stated that, based on the physical appearance of the sample, it could not be considered roasted areca nut. The report also noted that the sample had the characteristics of dried areca nut.
Court’s Observation
The Bench noted that the laboratory's conclusion regarding the nature of the product was based on its physical appearance rather than another scientific parameter specifically establishing that the product was dried instead of roasted.
The Court also took note of the testing procedure placed before it. The petitioner argued that the applicable food safety framework contemplated laboratory reports within five days, whereas the reports in the present matter were supplied nearly a month later.
The Court further observed that Customs authorities had earlier released four consignments on personal bond. It found that the consignments involved in the present petitions should similarly be released.
“We may also take into consideration the stand of the revenue that the four consignments of areca nuts were released on personal bond... We, however, find that in its reports... the moisture content... is below 7%, which is within the permissible limit of moisture.”
The Bench also noted that a private laboratory report relied upon by the petitioner had found the imported consignments to be roasted areca nuts.
Decision
The Court allowed the petitions and directed the concerned respondents to release the imported consignments of roasted areca nuts forthwith on the petitioner furnishing a personal bond.
The Court ordered that physical delivery of goods declared fit for consumption should be ensured within a fortnight. It also directed that the two consignments which had been withheld for about eight months be released in accordance with law.
The release was made subject to the ongoing proceedings concerning determination of the customs duty.
The petitioner was directed to reply to the show-cause notice within four weeks, after which the authorities could proceed with the matter in accordance with law.
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