Faulty rules bring down seized cinnamon prices

After seizing cinnamon, a panchanama was prepared in which the consignment was quoted at 10 tonnes worth Rs 25 lakh. The department had also seized the truck (No. BR-01H-7411) which was carrying the consignment to Mumbai. The seizure operation was carried out in the presence of then Excise Commissioner of Nagpur, Z B Nagarkar, then Additional Commissioner, T K H Ghauri and Assistant Commissioner, Dinesh Pangarkar. After transfer of all these top officials from Nagpur, nosteps were taken to dispose off the seized cinnamon, a perishable item for human consumption.

As per Rule 110 of Customs – AC-62, perishable items should be disposed off within seven days of their seizure. Even the seized vehicle should also be in running condition. But even after a lapse of 15 months, the seized cinnamon is still lying with the department.

Speaking to The Indian Express, K C Singh, Commissioner of Customs and Excise, Nagpur division said that the Central Government had laid down regulations in connection with the disposal of perishable food items. As per rule, the department should give first priority to National Consumer Cooperative Society (NCCS), an apex body sponsored by the Government of India.

As per the regulation, the department had offered NCCS, Nagpur branch to take the consignment as per the market cost with a discount of 14.5 per cent. The first offer was made to NCCS on October 7, 1997 about six months after seizure.

In its reply, the NCCS had quoted the rate ofcinnamon at Rs 84 per kg with a discount of 14.5 per cent. There was a vast difference in the NCCS quoted rate and open market rates. In this connection, the department sought a reply from NCCS, New Delhi whether they were ready to lift the stock or not.

"We were fully dependent on NCCS. But even after a lapse of six month, the department has not received any communication from the NCCS," he informed.