2013 (8) TMI 778 - AT - Customs

Importation of Vitamin C: NOC Compliance Overrules Confiscation

The judgment focused on the importation of vitamin C through a non-designated port, resulting in the confiscation of goods and imposition of penalties. ... Confiscation of imported goods – redemption fine and penalty were imposed - It was an admitted fact that assesses had obtained NOC from Assistant Drug Controller – Held that:- Revenue’s stand of contravention of Customs law cannot be upheld - confiscation of the goods would not be justified in terms of Circular No. 16/6-DC - Cumulative reading of Boards instructions and the instructions issued by Drugs Controller General of India makes it very clear that if importer obtains NOC for import of the drugs through Ports other than specified ports, the importation cannot be held to be illegal - It was also an undisputed fact that representative sample of Vitamin C (ascorbic acid) were sent to Assistant Drug Controller and were found to be as per declaration - It was thereafter that Assistant Drug Controller issued NOC for release of the goods – order was set aside – decided in favor of assesse. Issues:Import of vitamin C through a non-specified port, confiscation of goods, imposition of penalty, validity of NOC from Assistant Drug Controller.Analysis:The judgment dealt with the issue of importing vitamin C through a port not specified for drug imports, leading to confiscation of goods and imposition of penalties. The appellants imported vitamin C via ICD Loni, not a designated port for drug imports, which prompted the Revenue to take action. The original adjudicating authority ordered the confiscation of goods with a Redemption Fine of Rs.5 lakhs and imposed a penalty of Rs.one lakh in each case, a decision upheld by the Commissioner (Appeals), leading to the present appeal.During the hearing, the appellant argued that they had obtained a No Objection Certificate (NOC) from the Assistant Drug Controller General of India in accordance with Circular No. 16/6/-06-DC dated 15.6.2007, thereby complying with the relevant regulations. The Circular No. 8/2010-Cus dated 26.3.10 was examined, which referred to following the instructions provided by the Drugs Controller General of India in cases of drug imports at non-notified places.The judgment highlighted that the instructions from the Drugs Controller General of India clarified that importers could obtain NOCs for drug imports through ports other than the specified ones, as long as the necessary approvals were in place. As the appellants had obtained the NOC from the Assistant Drug Controller and the imported goods were found to be as declared, the confiscation of goods and penalties imposed were deemed unjustified. Therefore, the judgment set aside the previous order of confiscation and penalty, allowing the appeals in favor of the appellants.In conclusion, the judgment emphasized the importance of compliance with regulations and obtaining necessary approvals, such as the NOC from the Assistant Drug Controller, to ensure the legality of imports, even if not through specified ports designated for drug imports. The decision rested on the interpretation of relevant circulars and instructions to determine the lawfulness of the importation of goods in question.