2011 (1) TMI 1313 - AT - Customs

Summary

Issues Involved:
Violation of Rule 43A of the Drugs and Cosmetics Rules, 1945 by importing goods through Tuticorin Port, Customs Act provisions, Confiscation under Section 111(d) of the Customs Act, 1962, Leniency in imposing fines and penalties.

Analysis:

Violation of Rule 43A of the Drugs and Cosmetics Rules, 1945:
The appellants imported veterinary drugs through Tuticorin Port, believing it was allowed under Customs Notification No. 62/94 (N.T.). However, Rule 43A of the Drugs and Cosmetics Rules did not list Tuticorin Port as a designated port for drug imports. The violation was unintentional, and the goods were later certified as not spurious. The Tribunal emphasized that the Customs Act provisions and the Drugs and Cosmetics Rules serve different purposes, and compliance with both is necessary. The Tribunal found the confiscation of goods and imposition of fines justified due to the violation.

Customs Act Provisions and Confiscation under Section 111(d):
The Customs Notification allowing import through a port is general, but specific laws like the Drugs and Cosmetics Rules must also be followed. The Tribunal clarified that the violation of Rule 43A of the Drugs and Cosmetics Rules led to confiscation under Section 111(d) of the Customs Act, not Section 111(a) as in a previous case. The judgment highlighted the importance of adhering to all relevant laws and regulations governing imports, even if a general Customs notification exists.

Leniency in Imposing Fines and Penalties:
While the Tribunal upheld the confiscation and imposition of penalties for the violation, it acknowledged the appellants' unintentional breach and subsequent corrective actions. The authorities had already shown leniency by imposing a nominal penalty. The Tribunal decided to reduce the redemption fine imposed on the appellants from &8377; 5 lakhs to &8377; 2 lakhs per case. This reduction was granted as a gesture of leniency, with a warning against future violations.

In conclusion, the Tribunal partially allowed the appeals by reducing the redemption fines but upheld the confiscation and penalties imposed for the violation of Rule 43A of the Drugs and Cosmetics Rules. The judgment underscores the importance of compliance with specific regulations alongside general customs provisions and the consideration of leniency based on the circumstances of each case.