Customs Classifies Animal Feed as Edible Nuts: Madras HC Finds ₹1 Cr Bank Guarantee on ₹18L Import Onerous, Orders Reconsideration

The Madras High Court ordered "reconsideration" after Customs incorrectly "classified animal feed as edible nuts," leading to an "onerous bank guarantee" for import. The court found the customs authorities' classification erroneous, as the imported goods were clearly intended and formulated as animal feed, not for human consumption. The imposition of a burdensome bank guarantee based on this incorrect classification was deemed arbitrary. The ruling directs Customs to re-evaluate the classification based on the actual nature and use of the product, ensuring fair trade practices and appropriate import duties.