Page 165 - ELT_1st August 2020_Vol 373_Part 3

2020 ] G.G. HERBALS PVT. LTD. v. UNION OF INDIA 347

show that any Pest Risk Analysis was conducted in respect of cotton grains im-
ported as animal feed nor have the respondents placed on record any material or
data to show that animal feed imported in the past was found to be infested with
pests or bacteria or fungal pathogens. As observed by this Court in the above
referred decision, the amended Entry No. 19 does not define animal feed, but it
provides restrictions for its import thereof. The Court held that Schedule-VII per-
tains to list of plants/planting materials where imports are permissible on the
basis of Phytosanitary Certificate issued by the exporting country, the inspection
conducted by inspecting authority and the fumigation, if required. The condi-
tions of import contained in Schedule-VII, thus, are less stringent as compared to
those prescribed in Schedule-V. This is, otherwise, also logical in the present
case, since Schedule-V covers cases where cotton seeds are imported for sowing,
which would naturally have much wider impact on plant and insect species of
the country. Entry No. 19 of Schedule-VII, on the other hand, pertains to “animal
feed”, where conditions for importers understandably are less stringent. The
Court observed that if one compares Schedules-V and VII, and in particular En-
try No. 19 of Schedule-VII, the contentions of respondent No. 2 therein that im-
port of cotton seeds for any purpose other than for sowing is not permissible,
cannot be accepted. The Court held that cotton seeds imported for sowing would
fall under Entry No. 7 of Schedule-V. If cotton seeds happen to be animal feed,
the same would fall under Entry No. 19 of Schedule-VII. It was the case of the
respondents that any grains, including cotton seeds, if are in kibbled-
crushed/broken form, would be considered as “animal feed” and as such, whole
grain or any crop would not be considered as “animal feed” and therefore, is
listed separately in the Plant Quarantine Order. The Court found that cotton
seeds for sowing purpose would fall under Schedule-V, whereas cotton seeds
meant for animal consumption would fall under Schedule-VII. The Court con-
cluded that it is open for the importer to import cotton seeds for animal feed con-
sumption by complying with the conditions contained in Schedule-VII. The
Court further observed that Entry No. 19, which stands amended, requires that
such animal feed must be in kibbled-crushed seeds form or in the form of pellet
or dried cake. Per se, any substance meant for animal feed does not have to be in
these forms. The added requirements are more in the nature of conditions im-
posed for import of any substance as ‘animal feed’.
24. During the course of hearing of the matter, the Court had called
upon the Learned Senior Standing Counsel to explain as to why it was not possi-
ble to import whole cotton grain and thereafter, crush-kibble it in India. In re-
sponse thereto, it was submitted that Pest Risk Analysis identifies the risk associ-
ated with a commodity and the specification of risk mitigating measures against
them to facilitate safe trade. Accordingly, commodities have been notified in dif-
ferent schedules, viz. Schedules-IV, V, VI and VII of the Plant Quarantine Order
based on Pest Risks associated with the commodity. Under Schedule-VII, com-
modities exclusively meant for consumption where specific exotic pests are not
listed, but can carry storage pests, are regulated. Import of cotton seed is regulat-
ed by Schedule-V of the Plant Quarantine Order subject to the recommendation,
supervision, monitoring and testing by the Director, Central Cotton Research
Institute, Nagpur (Maharashtra) due to association of following quarantine
pests :

EXCISE LAW TIMES  1st August 2020  165