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TMI Blog2022 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ivery of the disputed items. Though the custodian can discharge/clear the uncleared items, it shall be permitted only by acquiring the permission of a proper authority - In the present case, despite not obtaining the BIS certificate and NOC from the Assistant Drug Controller declaring the goods fit for Human consumption and not hazardous for human health, the custodian moved ahead by auctioning the goods that were prohibited for sale making the entire process in contravention to The Customs Act, 1962. Appeal allowed - decided in favor of appellant revenue. - APOT No. 131 of 2022 With WPO 369 OF 2021 IA No. GA 1 OF 2022 GA 2 OF 2022 - - - Dated:- 30-9-2022 - HON BLE CHIEF JUSTICE PRAKASH SHRIVASTAVA, AND HON BLE JUSTICE RAJARSHI B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent No.3 and 4 on their website with regard to the goods/lots offered for E-auction along with certain special terms and conditions as under clause VI of the Disposal Manual 2019 (hereinafter referred to as the Manual ) and the unclaimed/uncleared/time expired goods are sent to MSTC Ltd., for auction to ensure maximum outreach. 3. The writ petitioner, herein the respondent No. 1 took part in the e-auction and participated in tender notice with regard to the lots suitable for him, i.e., lot no.2.0, lot no.5.0 and lot no.19.0. On accepting the respondent No. 1 st highest bid, MSTC Ltd. issued sale intimation letter in favour of him and requested to make security deposit for a sum of Rs. 14,88,250/-. The respondent No.1 duly deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner/respondent No.1 being aggrieved filed a writ petition before this Hon ble Court in July, 2021 contending that once the bid was accepted by the authorities and full payment was made, there was no scope on the part of the authorities to withhold the consignment on any ground. 6. The learned Single Judge upon having considered the contentions of the counsel for respective parties held that No other objection has been raised by the respondent authorities for withholding the release of the goods. Since the petitioner has complied with all formalities, the respondent authorities are obliged to release the goods in question to the petitioner. For the reasons as aforesaid the objections raised for withholding the release of goods are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing about such criteria, the custodian had wrongly put up the disputed goods for auction without a mandatory BIS certificate that is required for the clearance of the goods for home consumption. III. As per Rule 31 of the Drugs and Cosmetics Rule, 1945, no drug shall be imported unless it complies with the standard of strength, quality and purity. The Assistant Drug Controller vie letter dated 25.06.2021 had expressly mentioned that the cosmetic items may be treated as imitation cosmetics and the same are not fit for human consumption since the products/items did not have a manufacturing and expiring date. Thus, releasing the same shall be harmful for the Indian consumer. Despite not obtaining the registration with the Central Drug Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oney for taking delivery fo the consignment, the authorities cannot withhold the consignment either in part or in full or on any gound whatsoever. II. A specific procedure has been laid down in the Manual to sell the goods of unclaimed/uncleared cargos through MSTC Ltd. Withholding to deliver certain items of lot nos. 2.0 and 5.0 to the petitioner/respondent No.1 despite complying with all the formalities is against the provision and procedure led down in the Manual. III. No restriction clause to deliver the lots were notified to the petitioner/respondent No.1 in the sell intimation letter. Thus, it is evident from the conduct of the authorities that their changing stand to deliver the goods after accepting the highest bid of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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