ALPA LABORATORIES Vs. DEPUTY COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) IN this petition, two orders passed by the Customs Authorities under section 111 (d) of the Customs Act read with section 3 of the Imports and Exports (Control) Act, 1947 seeking to confiscate the imported Oxytetracycline Hydrochloride have been challenged. By the impugned orders, the petitioners have been given the option to redeem the confiscated goods on payment of redemption fine of Rs. 1,65,000/- (Rs. 1,50,000/- + Rs. 15,000/- ).

(2.) THE facts relevant for the present petition are as follows :--

(3.) THE petitioners inter alia manufacture Oxytetracycline capsule for which Oxytetracycline Hydrochloride is a raw material. On or about the 3rd February, 1989, the petitioners entered into a contract with a foreign supplier for import of 1000 kgs. of Oxytetracycline Hydrochloride (the said goods for short ). In April 1989, the foreign supplier airshipped 100 kgs of the said goods and on arrival of the said goods, the petitioners filed a bill of entry on 6-4-1989, seeking clearance of the said goods as OGL item, being raw material (not covered under Appendix 2, 3, 5 and 8) required for the manufacture of the drug Oxytetracycline Capsule. Alternatively the petitioners claimed clearance of the said goods as drug intermediate under the Import Licence bearing No. 3192069 dated 27-11-1987 which licence was acquired by the petitioner from the market as it was freely transferable.