2013 (8) TMI 162 - AT - Customs

Confiscation of goods - Department confiscated the goods u/s 111(d) Held that - The goods were confiscated by the Original Authority and were ordered to be re-exported on payment of fine and penalty - The goods have residual shelf life less than 60% and in terms of Rule 31 of Drugs & Cosmetics Rules - the import of any drug having less than 60% residual shelf life was prohibited court upheld the order appeal decided against the assesssee.

Summary

Issues:
1. Reduction of redemption fine and penalty imposed on the appellant for importing drugs with less than 60% residual shelf life.

Analysis:
The appeal pertains to the reduction of redemption fine and penalty imposed on the appellant for importing goods with a residual shelf life of less than 60%. The appellant imported Draximage MDP Kits (Diagnostic Regent) declaring an assessable value of Rs. 5,24,472/- under Customs Tariff Heading 30063000. The Assistant Drug Controller found that the goods had a residual shelf life below the permissible limit of 60% as per the Drugs & Cosmetics Rules, 1945, leading to the confiscation of the goods under Section 111 (d) of the Customs Act. The appellant was given the option to re-export the goods upon payment of a redemption fine of Rs. 60,000/-, with a penalty of Rs. 20,000/- imposed under Section 112 (a) of the Customs Act. The Commissioner (Appeal) reduced the redemption fine to Rs. 25,000/- and the penalty to Rs. 10,000/-, prompting the appellant to challenge the order seeking further reduction.

Upon hearing both sides, the Tribunal noted that the goods were indeed imported with a residual shelf life below the permissible limit, leading to their confiscation and the imposition of fines and penalties. The Tribunal observed that the Commissioner (Appeal) had already reduced the quantum of the fine and penalty. Finding no valid grounds for a further reduction, the Tribunal upheld the Order in Appeal, ultimately rejecting the appellant's challenge. The judgment highlights the strict adherence to the regulatory provisions governing the import of drugs and the corresponding penalties for non-compliance, emphasizing the importance of complying with the specified shelf life requirements to avoid confiscation and penalties under the Customs Act.

In conclusion, the Tribunal's decision underscores the significance of adhering to regulatory standards, particularly in the importation of pharmaceutical products, to ensure compliance with the relevant laws and regulations. The judgment reiterates the consequences of importing goods with a shelf life below the prescribed limit, emphasizing the enforcement measures, including confiscation and penalties, as outlined in the Customs Act and the Drugs & Cosmetics Rules, 1945.