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2023 (1) TMI 462

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..... of the three drugs, two drugs namely B-CO syrup and Sabtron have been found to be of standard quality. Thus, the whole proceedings by the Customs Authority for confiscation are vitiated. Appeal allowed. - Customs Appeal No. 50976 of 2021-SM - FINAL ORDER NO. 50019/2023 - Dated:- 10-1-2023 - MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) Sh. Rajnish Kumar Verma, Advocate for the appellant Ms. Tamanna Alam, Authorised Representative for the respondent ORDER The appellant, M/s Medista Overseas is holder of license to manufacture drugs with the help of supporting manufacturer who is named in the license. Pursuant to manufacture, the appellant sells the pharmaceutical /drugs and mainly exports the goods. The appellant .....

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..... ion Certificate‟ (NOC) from the Regulatory Authority i.e. Drug Controller. As directed, appellant submitted the details with the Drug Inspector, Assistant Drug Controller (ADC), ICD Pithampur for obtaining NOC with respect to the aforementioned six drugs. The ADC observed that on inspection, it is found that name of manufacturer is mentioned as M/s Medista Overseas, Indore under manufacturing license No.25A/16/2013 dt. 19.07.2013 and manufacturing license No. 28A/14/2013 dt. 19.07.2013. However, address of Principal unit M/s McW Healthcare Pvt. Ltd., Indore was missing on the drug at Sl. No. 4, 5 and 6 above. On enquiry Sh. Abhijeet Motiwale, Director of M/s McW Healthcare Pvt. Ltd., had stated that these drugs have not been manufac .....

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..... , contract/ agreement and copy of manufacturing license. 5. The export consignment was seized under panchnama dt. 23.04.2016, it appeared to Revenue that the goods are liable to confiscation. The representative samples were drawn vide Test Memo No. 01/2016-17/Export dt. 23.04.2016 and handed over to the Drug Inspector vide letter dt. 30.04.2016 for testing purpose. The Drug Inspector submitted test report dt. 27.12.2016, forwarded the certificate of analysis test report done by CDSCO, Mumbai. As per the report of the Government analyst E-Mycin (Erythomycin Estolate Oral Suspension USP, batch No. L-820) was found not of standard quality, while the other drugs namely B-CO Syrup and Sabtron Suspension were found of standard quality. 6. .....

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..... have been printed on the products refused to have manufactured the said product. The Drug Inspector have nowhere suggested that the product was unfit for human consumption and there was no such laboratory report. The Drug Inspector declared the export goods as spurious only on the ground that the supporting manufacturer M/s McW Healthcare refused to have manufactured them. Further, for the purpose of export the drugs are required to meet the standards laid-down by the importing country. As per the Public Notice dated 11.12.2015 issued by the Drugs Controller General (India), Central Drugs Standards Control Organisation, New Delhi from F. No. DCGI/MISC/2015(199), the Government have decided that the requirement of NOC with respect to Shipp .....

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..... the Joint Drugs Controller (India), inter-alia the name of the drugs presented for export as aforementioned. The appellant also produced certificate of pharmaceutical products issued by the licensing authority, Food and Drugs Administration, Madhya Pradesh, mentioning that the drugs meant for export to Liberia namely Sabron, certifying that the appellant is entitled to export the goods under dispute. The certificates are dated 21.09.2014. The appellant also produced free sale certificate dt. 30.11.2013 issued by the Licensing Authority, Food and Drugs Administration, M.P., certifying that appellant is holding valid manufacturing license which is valid upto 18.07.2018 to manufacture for sale and distribution of drugs for export freely, subj .....

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..... ntitled to freely export the goods, subject to meeting the standard of the importing country. However, the appeal was rejected. 11. Assailing the impugned order, ld. Counsel for the appellant Sh. Rajnish Kumar Verma inter-alia urges that it is evident from the Public Notice dt. 11.12.2015 issued by the Drug Controller General (India), that in the case of export by the appellant under the shipping bill dt. 16.04.2016, customs was not required to call for NOC from the Drug Inspector. The appellant was only required to comply with the regulatory requirement of all the importing country. Further, appellant have led sufficient evidence that they are licensed manufacturer, wherein M/s McW Healthcare are the supporting manufacturer, duly manu .....

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