High Court Rules Imported Brine Shrimp Eggs Qualify as Prawn Feed; Criticizes Customs for Defying 2010 Judgment
The Calcutta High Court has held that the imported brine shrimp eggs classified as ‘prawn feed’ and 5% Basic Customs Duty (BCD) is applicable.
The bench of Chief Justice T.S Sivagnanam and Justice Chaitali Chatterjee (Das) has observed that direct the Department to accept the classification as adopted by the appellant and accordingly, there will be a direction to the adjudicating authority to accept the classification as adopted by the appellant by classifying the imported goods under Heading 2309.90 and extend the benefit of the relevant notifications in favour of the appellant/importer.
The case dates back to 1998–2001, when Atherton imported multiple consignments of Artemia Cyst (Brine Shrimp Eggs), declaring them as “prawn feed” eligible for concessional customs duty under Heading 2309.90 of the Customs Tariff. However, the Department disputed this classification, arguing that the goods were not prawn feed at import but became so only after incubation—thus proposing classification under Heading 0511.99, attracting a higher duty.
A complex legal battle ensued, involving split CESTAT opinions, a Supreme Court dismissal on a related appeal, and a 2010 High Court remand directing the Customs Commissioner to conduct a factual inquiry specifically to determine whether the imported goods contained embryos, as this would support their classification as prawn feed.
The Court observed that the Tribunal, in its 2024 decision, had reinstated its earlier views that had already been quashed by the High Court in 2010. This, the Court held, amounted to sitting in judgment over its own binding decision.
“The Tribunal’s failure to appreciate the limited scope of de novo adjudication and its disregard of the earlier High Court ruling renders its decision perverse,” the bench stated.
The Court slammed the department for its seven-year delay in initiating the de novo adjudication, despite clear instructions to conclude it within 12 weeks in the 2010 order. This delay, the Court held, had prejudiced the appellant’s case and rendered the original directions unworkable due to the perishability and altered nature of the biological samples involved.
The Court pointed out that the department had classified similar goods as prawn feed under Heading 2309.90 prior to the relevant notification, implying inconsistency in the department’s own stand.
The Court directed the Customs Department to accept the classification of the goods as prawn feed under Heading 2309.90 and extend the benefit of the relevant duty exemption notification to the importer.
The Court ordered the Customs department to comply with this direction within three weeks, warning that any failure would attract strict judicial consequences, including holding the responsible officer personally accountable.
Case Details
Case Title: Atherton Engineering Co. Private Limited Vs The Commissioner Of Customs (Airport & Air Cargo Complex), Kolkata
Case No.: CUSTA/86/2024 IA NO: GA/2/2024
Date: 10.07.2025
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