TaxTMI 
TaxTMI 
2014 (5) TMI 206
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....and, therefore, the matter was referred to Assistant Drug Controller. The Assistant Drug Controller opined that the goods are Clorsulan which is used for therapeutic purpose and can be produced under the proper drug licence. The Assistant Drug Controller also stated that the exporter did not have the manufacturing licence and, therefore, the manufacturer of the said goods was without proper licence and the manufacturer has committed an offence under Section 18(c) punishable under Section 27(ii) of the Drugs and Cosmetics Act, 1940. The case was adjudicated by the original authority and the goods were confiscated under Sections 111(d) and 111(m) of the Customs Act, 1962. However, the importer was given an option to redeem the goods on paymen....
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....re and sale in contravention of the said Act. As per the Drugs & Cosmetics Act, 1940 a licence is required for manufacture of drug and it is a fact that these goods were manufactured in India without a valid licence. (iii) Rule 30(B) of the Drugs & Cosmetics Rules, 1942 prohibits import of a drug, which is prohibited in the country of origin/manufacture. The combined reading of Section 18 and Section 30(B) and other provision of the Drugs & Cosmetics Act, 1940 makes it evident that the goods which are prohibited for manufacture in India may not be allowed to be imported into India whether by way of re-import or otherwise. Section 10 of the Drugs & Cosmetics Act, 1940 prohibits imports of drugs prohibited by R....
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....ted that the said goods are for industrial end use and, therefore, there has been no mis-declaration whatsoever. The learned Advocate also argued that Section 18 of the Drugs & Cosmetics Act speaks about prohibition of manufacture and sale of certain drugs and cosmetics. The present drug is not prohibited for manufacture or sale. The fact that the respondents did not have the manufacturing licence for the manufacture of the said drug is irrelevant as they are not claiming that they manufactured the said goods but they have traded the said goods. The learned Advocate further argued that the fact that the said drug is not prohibited for manufacture or sale in India. Rule 30-B of the Drugs and Cosmetics Rules is not applicable and, therefore, ....