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TMI Blog2019 (4) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture, sale and distribution but did not specifically mention export. A doubt can arise whether sale does not include sale through export also. This point was clarified by the very organisation which is supposed to administer the prohibition. Therefore, the drugs in question were not prohibited drugs for export during the relevant period. The related question is whether appellant was required to take NOC from the Drugs Controllers General of India before export and answer is Yes . The appellants have not taken NOC before export. In such a case, when the shipping bills were processed, the exports could have been stopped by the Customs Officer who were processing the goods. Even if the Assessing Officer had missed out the fact that no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmr) dated 10.10.2012. The appellant is a manufacturer of pharmaceutical bulk drugs and had exported 22 consignments of drug called Cisapride Monohydrate BP . The Directorate of Revenue Intelligence (DRI) gathered intelligence that this drug is a prohibited drug in terms of Govt of India s Notification No GSR 82(E) dated 10.02.2011 which prohibited manufacture, sale and distribution of Cisapride Monohydrate BP and it s formulations for human use. After conducting investigations, a show-cause notice dated 21.03.2012 was issued by the DRI to the appellant for exporting this drug vide 22 shipping bills in violation of the aforesaid notification issued by Ministry of Health and Family Welfare under the Drugs and Cosmetics Act. It was alleged t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the outset the Gazette Notification No GSR 82(E) dated 10.02.2011 did not prohibit export of the drug. It only prohibited manufacture, sale and its distribution for human use. Through a subsequent letter dated 30.12.2011, the Central Drugs Standard Control Organisation has clarified as follows It is pertinent to point out here that the Gazette Notification No 82(E) dated 10.02.2011 for banning of drugs prohibits the manufacturing, sale and distribution of the drugs within the country but it is not applicable for drugs banned exported outside country for which the under-signed has been notified by the Office Order dated 29.08.2011. This office has already issued a number of export NOCs for the following manufacturers within A.P. with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or export at all. Therefore the entire show-cause notice does not stand on this ground alone; (b) the goods in question are not smuggled but were exported from the normal customs channels; and (c) if any requirement for export of these goods was not fulfilled, the Customs Officers could have not given the Let Export Order and could have asked them to get the necessary certificates. The only mistake which they committed is exporting the drug without first obtaining the NOC which was also not noticed by the Customs Officers. It was, therefore, an inadvertent error on their part as well as on the part of the officers who processed their exports. Therefore the entire impugned order needs to be set aside. 5. Learned A.R. reiterates the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer had missed out the fact that no NOC was submitted, the officer issuing Let Export Order is expected to verify all documents before issuing Let Export Order. This system continues even today even in cases of facilitated shipping bills proceseds through Risk Management System. In other words, whether there are imports or exports, all documents are required to be checked in all cases by the officer giving Let Export Order in case of exports or out of charge in case of imports. It was wrong on the part of the appellant to export the drug without obtaining NOC. It was equally wrong on behalf of the Customs Officer to have cleared the export consignment without the NOC. It does not appear from the show-cause notice that the custom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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