2009 (2) TMI 577 - AT - Customs

Summary

Issues involved: Interpretation of Rule 43A of Drugs & Cosmetic Rules, 1945 regarding port restrictions for import of drugs.

Summary:
The Appellate Tribunal CESTAT, New Delhi, heard an appeal where the Revenue challenged the Commissioner (Appeals) order regarding the import of Homeopathic Medicines. The issue was whether the import violated port restrictions under Rule 43A of Drugs & Cosmetic Rules, 1945, as the drugs were cleared at ICD, Patparganj, Delhi, instead of the prescribed ports. The importer argued that the import was through Nhava Sheva, a prescribed port. The Tribunal noted that the bills of entry indicated import through Nhava Sheva, and upheld the importer's contention that the import was compliant with the port restrictions. The Tribunal distinguished previous court decisions cited by the Revenue, stating they were not applicable to the present case. Consequently, the Tribunal upheld the Commissioner (Appeals) order and dismissed the Revenue's appeal.

In the judgment, the Tribunal emphasized that the requirement of the Notification was for drugs imported by sea into India to pass through specified ports, including Nhava Sheva. Despite the goods being cleared from ICD, Patparganj, Delhi, the Tribunal accepted the importer's argument that the import was effectively through Nhava Sheva, a prescribed port. The Tribunal rejected the Revenue's reliance on previous court decisions, stating they were not relevant to the current case's facts concerning the date for rate of duty. Ultimately, the Tribunal upheld the Commissioner (Appeals) order, affirming that the import of Homeopathic Medicines did not violate the port restrictions under Rule 43A of Drugs & Cosmetic Rules, 1945.