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Issues: Whether imported citric acid monohydrate described as BP grade could be detained on the ground that it required a no objection certificate or import licence under the Drugs and Cosmetics regime, despite the importer's declaration that it was for non-medicinal use.
Analysis: The imported goods were repeatedly certified by the importer and its supplier as intended for non-medicinal use and for sale to industrial users. The mere suffix "BP" indicated grade or quality and did not by itself establish that the goods were meant for medicinal use. Under Rule 43 and Rule 123 of the Drugs and Cosmetics Rules, 1949, the relevant factor was the importer's certification and declared end use, and not an insistence on additional certification beyond what the rules required. The authority's reliance on captive consumption was also misplaced, since no such requirement existed under the governing regime or the circular relied upon. The Court further noted that the respondents could enforce compliance through checks at the purchasers' premises, but could not deny release on speculative apprehensions about possible downstream misuse.
Conclusion: The detention of the goods on the basis of the impugned NOC requirement was unjustified, and the importer was entitled to release of the goods on furnishing the stated undertaking and purchaser details.