TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal modifies penalty for unauthorized export of medicines, reduces fine under Customs Act</h1> <h3>Shri Konudula Raghavendra Reddy Versus Commissioner of Customs Hyderabad - GST</h3> Shri Konudula Raghavendra Reddy Versus Commissioner of Customs Hyderabad - GST - TMI Issues:The judgment involves issues related to the confiscation of medicines being carried out of India without proper permission and the imposition of penalty under Sec 114(i) of the Act.Summary:Confiscation of Medicines:The Appellant, a partner in a wholesale trade of medicines business, attempted to export Hepatitis C medicines to Vietnam without proper authorization. The medicines were intercepted from an individual traveling to Vietnam, who revealed that he was carrying medicines for the Appellant's company. The Appellant admitted to exporting medicines in commercial quantity without valid permission, violating drug distribution rules. The authorities issued a show cause notice proposing confiscation of the medicines and a penalty under Sec 114(i) of the Customs Act. The seized drugs were confiscated absolutely, and a penalty was imposed on both the individual carrying the medicines and the Appellant.Appeal and Ruling:The Appellant appealed, arguing that they had a valid IEC Code and exported medicines to help patients, not to evade duty. They contended that the absolute confiscation order was unjust as the medicines were not prohibited goods. The Commissioner (Appeals) upheld the adjudication, leading the Appellant to approach the Tribunal. The Tribunal dismissed Revenue's jurisdictional objection and proceeded with the appeal. Considering the circumstances, the Tribunal upheld the confiscation but set aside the absolute confiscation order. The valuation of the medicines was reduced to the purchase price, and the penalty on the Appellant was reduced from Rs.2,50,000 to Rs.50,000 under Sec 114(i) of the Customs Act. The Tribunal acknowledged that due to the passage of time, the goods were no longer available for redemption.Conclusion:The Tribunal found that although the Appellant breached licensing requirements, absolute confiscation was not warranted. The penalty imposed on the Appellant was reduced due to the loss suffered from the confiscation of the medicines. The Appeal was allowed in part, with the Tribunal making adjustments to the valuation and penalty amount.
TaxTMI 
TaxTMI 
