Food-grade citric acid outside Drugs and Cosmetics Act controls; customs confiscation, fine and penalty could not be sustained.

Citric acid monohydrate imported as food grade, and not intended for medical or pharmaceutical use, was treated as outside the scope of Chapter III of the Drugs and Cosmetics Act because the sample did not conform to Indian Pharmacopeia specifications and the invoice supported a food-grade description. On that basis, the regulatory prohibition under Section 10 did not apply, so confiscation under Section 111(d) of the Customs Act was not sustainable. The consequential redemption fine and penalty also could not stand, and the appeal succeeded.

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Issues: Whether citric acid monohydrate imported as food grade and not intended for medical or pharmaceutical use was liable to confiscation under Section 111(d) of the Customs Act on the footing that it attracted Section 10 of the Drugs and Cosmetics Act.

Analysis: The sample tested by the Customs House was found not to conform to Indian Pharmacopeia specifications, and the invoice description supported the claim that the goods were food grade. On that basis, the imported citric acid was treated as not meant for medical use and therefore outside the scope of Chapter III of the Drugs and Cosmetics Act, where Section 10 operates. If the goods were outside that regulatory prohibition, confiscation under Section 111(d) could not be sustained, and the consequential penalty and redemption fine also could not stand.

Conclusion: The confiscation was not justified. The fine and penalty were set aside, and the appeal succeeded.

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