CHEMICAL CENTRE INDIA Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The Petitioner seeks release of goods imported by it which, according to the Petitioner, have been illegally detained by the Respondents.

(2.) The Petitioner is a partnership firm engaged in importing citric acid monohydrate ("CAM?) from a Chinese supplier since 2008. The imports have been allowed by the Commissioner of Customs, Respondent No. 1, upon the Petitioner furnishing the requisite documents. The Petitioner sells CAM in the retail market and the invoices of the Petitioner contain the endorsement "not for medicinal use." The Petitioner holds a licence under Form 21-B and 20-B under the Drugs and Cosmetics Act, 1940 ("DCA?) for sale or distribution by wholesale. The Petitioner states that CAM is a versatile industrial chemical which has several uses and in particular for cleaning industrial vessels, dissolving rust, water stains from glass etc. It is reiterated that CAM imported by the Petitioner is for non-medicinal uses. Accordingly, it is submitted that the said import does not require a licence as it is covered by Rule 43 and Schedule D of the Drugs and Cosmetics Rules, 1949 ("DCR?). It is submitted that as long as the Petitioner is able to certify that the CAM imported by it is for non-medicinal uses, it is exempt from obtaining a licence for the import of CAM in terms of Rule 43 DCR. It is further submitted that Rule 123 DCR exempts drugs specified in Schedule K from the provision of Chapter 4 of the DCA as long as they are not sold for medicinal use and each container is labeled conspicuously with the words "not for medicinal use."

(3.) 96 MT of CAM valued at US$ 62,400 in the form of bulk packs of 25 kgs each was imported by the Petitioner. A bill of entry dated 23rd July 2010, an invoice dated 25th May 2010 and packing list dated 25th May 2010 were all submitted to the Customs officials for clearance. The invoice clearly described the bulk goods as "Citric Acid Monohydrate BP 93." This was also indicated in the packing list.