Pr. Commissioner of Customs Vs Rajat International (CESTAT Allahabad)
The Department filed an appeal against an order of the Commissioner (Appeals) directing provisional release of imported goods, namely non-sterile, non-measurable powdered latex examination gloves Class-A, subject to furnishing a bond and a bank guarantee of ₹3 lakh. The respondent, a proprietorship concern engaged in the import of gloves, had imported the goods from Malaysia and filed a Bill of Entry at ICD Dadri.
The imported goods were detained by Customs on the grounds that ICD Dadri was allegedly not a notified port under Rule 43A of the Drugs and Cosmetics Rules, 1945, that the goods appeared to be classifiable under a different tariff heading, and that no NOC or registration under the Medical Devices Rules, 2017 had been provided. The goods were later seized, and the respondent sought provisional release under Section 110A of the Customs Act. After the request was rejected by the Joint Commissioner, the Commissioner (Appeals) ordered provisional release of the goods.
The Department challenged the appellate order on three principal grounds: alleged misclassification of the imported goods, non-compliance with labelling requirements, and import through a non-notified port. It argued that the gloves were more appropriately classifiable under CTH 40151200 rather than CTH 40151900 and that the classification adopted by the importer was intended to avoid obtaining an NOC from the Assistant Drug Controller. The Department further contended that the goods lacked mandatory labelling particulars and that medical examination gloves, being treated as drugs, could only be imported through notified ports under Rule 43A.
