Unnati Cargo Vs Commissioner of Customs (Export) (CESTAT Delhi)
In this case, a pharmaceutical exporter filed a shipping bill for export of medicines to Iraq through a Customs Broker. During examination, Customs authorities found that one of the medicines, MIGRAN, contained Ergotamine, a substance listed under Schedule-B of the NDPS (Regulation of Controlled Substances) Order, 2013. Authorities alleged that export of the product required a No Objection Certificate (NOC) from the Narcotics Commissioner, which had not been obtained. Additionally, 50 bottles of Ledifos medicine were found in the consignment though they were not declared in the packing list. The goods were seized and confiscated, and a penalty of ₹50,000 was imposed on the Customs Broker under Section 117 of the Customs Act.
The Department alleged that the Customs Broker violated Regulation 10(d) of the Customs Broker Licensing Regulations (CBLR), 2018 by failing to advise the exporter regarding compliance with NDPS requirements and by filing the shipping bill without ensuring the required authorization. The Customs Broker challenged the penalty, arguing that Regulation 18 of the CBLR already provides a specific penalty mechanism for violations of the regulations, making Section 117 inapplicable. The Broker also contended that Schedule-B covers only “Ergotamine and its salts” and does not include preparations containing Ergotamine.
