Re-export of imported cargo allowed where batch-number mismatch did not affect standard quality and compliance.

Imported cargo was initially treated as spurious because of a batch-number mismatch, but the laboratory report certified the samples as standard quality and compliant with prescribed specifications. In those circumstances, the alleged contravention was one that could be addressed under Rule 41 of the Drugs and Cosmetics Rules, requiring the importer to be given the option to export the goods to the country of manufacture where the defect was not remediable. The refusal to permit re-export was therefore unsustainable, and the request for re-export was allowed. The issue of penalty was left open for determination in statutory appeal.

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Issues: Whether the petitioner was entitled to re-export the imported cargo and whether the rejection of that request could be sustained when the samples tested as standard quality and the alleged defect was only a mismatch in the batch number.

Analysis: The imported goods were initially treated as spurious because of a discrepancy in the batch number, but the laboratory report obtained from the Central Drugs Testing Laboratory certified that the samples were of standard quality and conformed to the prescribed specifications. In the circumstances, the alleged contravention was one capable of being dealt with under Rule 41 of the Drugs and Cosmetics Rules, under which the importer must first be given the option to export the goods to the country of manufacture where the contravention cannot be remedied. The refusal to permit re-export was therefore not justified, while the question of penalty was left open for statutory appeal.

Conclusion: The rejection of the request for re-export was set aside and the respondents were directed to permit re-export of the cargo; the penalty issue was left to be pursued before the appellate forum.

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