No Penalty since NOC from Competent Authority under the Drugs and Cosmetics Act was accompanied for Import of Assorted Deodorant: CESTAT [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench has held that penalty cannot be imposed for the import of Assorted Deodorant to the notified port along with a Non-Objection Certificate from the competent authority under the Drugs and Cosmetics Act.

The appellant, M/s Beverly Hills Marketing Pvt. Ltd., was subjected to confiscation of goods being imported Assorted Deodorant valued at Rs. 28,51,851/- imported vide Bill of Entry dated 14.05.2018 at ICD, Garhi Harsaru in alleged violation of provisions of the Drugs and Cosmetics Act read with the rules thereunder with option to redeem on payment of fine of Rs. 2 lakhs and further penalty of Rs. 1,50,000/- has been imposed under Section 112(a) of the Customs Act.

The department was of the view that the importer had imported cosmetics in violation of the Drugs & Cosmetics Rules, 1945 as imports of drugs and cosmetics is not allowed through ICD, Garhi Harsaru (a non notified port).

The appellant contended that they are registered under Drugs & Cosmetics Act and with respect to the present consignment, NOC has been issued by the concerned authority declaring it to be safe for import.

“With effect from 10.01.2019, ICD Mundra port now has been recognized as one of the notified ports as per Rule 43A of the Rulesthe Adjudicating Authority vide impugned order has held that the appellant had attempted to clear goods imported vide Bill of Entry No. 6374054 dt. 14.05.2018 through non-notified ICD/ Port in violations of the provisions contained in Rule 133 read with Rule 43A of the Drugs and Cosmetics Rules, 1965 as import of drugs and cosmetics into India was not allowed through ICD, Garhi Harsaru,”

After considering the arguments from both sides, Mr. Anil Choudhary (Judicial Member) observed that “there is no deliberate violation of the provisions of port of restriction by the appellant as the goods have been imported through Nava Sheva, which is a notified sea port and further ICD, Garhi Harsaru falls under the jurisdiction of Commissioner of Customs, ICD, Patparganj. Further, I find that the competent authority under the Drugs and Cosmetics Act have issued ‘No Objection Certificate’ for release of the goods after inspection, and the appellant was registered under the Drugs and Cosmetics Act. Thus, this called for no adverse action against the appellant,” the Tribunal said.

To Read the full text of the Order CLICK HERE

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