Urban Essentials India Pvt Ltd Vs Commissioner of Customs (Imports) (CESTAT Chennai)
The appeal before CESTAT Chennai arose from an Order-in-Original dated 22.08.2025, whereby the Commissioner ordered confiscation of imported sanitary napkins, sanitary towels, and panty liners under Section 111(d) of the Customs Act, 1962, imposed redemption fine for re-export, and levied penalty under Section 112(a)(i). The dispute concerned imports made by the appellant through Bills of Entry dated 31.03.2025 and 05.06.2025 in respect of goods sourced from a Chinese supplier.
The Department relied upon the Medical Textiles (Quality Control) Order, 2024, as amended by the Medical Textiles (Quality Control) Amendment Order, 2025, issued under the BIS Act, 2016. According to the Department, sanitary napkins and related products were required to conform to Indian Standard IS 5405:2019/IS 5405:2025 and bear the BIS Standard Mark under a valid licence. Since the imported goods did not bear the BIS mark and no valid BIS licence was produced, the Department treated the goods as prohibited goods liable to confiscation.
The adjudicating authority held that the imported goods were covered by the Quality Control Order and that the importer could not claim the relaxation granted to Micro, Small and Medium Enterprises (MSMEs), since such relaxation was available only to domestic manufacturers and not to importers. It was further held that the consignments had been shipped and imported after the commencement dates prescribed under the amended Quality Control Order, making the proviso relating to old stock inapplicable. Consequently, the goods were confiscated.
