Shelf-life threshold for imported medicines: marginal breach and re-export made confiscation and penalty unsustainable.

Imported medicines with residual shelf-life marginally below the threshold in the proviso to Rule 31 of the Drugs and Cosmetics Rules, 1945 were held not to justify confiscation and penalty where the competent authority's discretion to permit import remained relevant, the goods had complied at the time of shipment, and they had already been re-exported. On those facts, the customs consequences were considered unnecessarily harsh and were set aside, granting the importer relief from confiscation and penalty.

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Issues: Whether imported medicines with residual shelf-life below the prescribed threshold were liable to confiscation and penalty, and whether the licensing authority's discretion under the applicable rule warranted interference with the customs action.

Analysis: The imported goods had residual shelf-life below the threshold prescribed under the proviso to Rule 31 of the Drugs and Cosmetics Rules, 1945, but the shortfall was marginal. The competent authority had discretion under the rule to permit import even below the threshold, yet that discretion was not exercised. The goods had already been re-exported and had satisfied the norms at the time of shipment. In these circumstances, the customs consequences under the confiscation and penalty provisions were found to be unnecessarily harsh.

Conclusion: The confiscation and penalty were not sustainable and were set aside.

Final Conclusion: The importer obtained complete relief from the customs consequences arising out of the disputed import of medicines.

Ratio Decidendi: Where a regulatory threshold for shelf-life is only marginally breached, the authority's discretion to permit import remains relevant, and confiscation and penalty are not justified when the goods otherwise complied at shipment and have already been re-exported.

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