Notified point of entry for cosmetics import controls confiscation and penalty where goods enter through an unauthorised route.

Cosmetics imported through a point of entry not notified under Rule 43A of the Drugs and Cosmetics Rules, 1945 are treated as prohibited imports under the Customs Act, 1962 and may be confiscated with penalty. The text distinguishes cosmetics from drugs or other substances under the Drugs and Cosmetics Act, 1940, and states that the Schedule D exemption applies only to substances not intended for medical use, not to cosmetics. While confiscation and violation were sustained, the redemption fine and penalty were reduced as excessive on the facts.

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Issues: Whether cosmetics imported through a place not notified under Rule 43A of the Drugs and Cosmetics Rules, 1945 were liable to confiscation under the Customs Act, 1962, and whether the redemption fine and penalty required reduction.

Analysis: Rule 133 of the Drugs and Cosmetics Rules, 1945 prohibits import of cosmetics except through the points of entry specified in Rule 43A. The distinction between "cosmetic" and "drug" or "substance" under section 3(aaa) and section 3(b) of the Drugs and Cosmetics Act, 1940 was held to be material, and the exemption in Schedule D was held applicable only to substances not intended for medical use, not to cosmetics. The imported goods were therefore treated as cosmetics imported through a non-notified point of entry, attracting the consequence of prohibited goods under the Customs Act. The adjudication on confiscation and liability to penalty was thus sustained, though the quantum of redemption fine and penalty was considered excessive in the facts.

Conclusion: The goods were rightly held liable to confiscation, but the redemption fine and penalty were reduced.

Final Conclusion: The appeal succeeded only to the limited extent of reduction of the monetary consequences, while the confiscation and the finding of violation were maintained.

Ratio Decidendi: Cosmetics imported into India must comply with the notified points of entry under Rule 43A of the Drugs and Cosmetics Rules, 1945, and import through a non-notified point of entry renders the goods liable to confiscation and penalty under the Customs Act, 1962.

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