MUMBAI: The Bombay high court has allowed the provisional release of 200kg of Ketamine Hydrochloride, worth Rs 72 lakh, which was seized by Customs from pharmaceutical company Supriya Lifescience Ltd., after holding that the delay in obtaining a fresh export authorisation was technical in the peculiar facts of the case.A division bench of Justices MS Karnik and Sandesh D Patil, in the order, quashed the August 10 rejection order passed by the assistant commissioner of customs and directed provisional release of the consignment subject to the company depositing Rs 72 lakh with Customs within a week.The case arose after Supriya Lifescience received an order from a South Korean company for 200 kg of Ketamine Hydrochloride. The company had initially obtained an Export Authorisation from the Central Bureau of Narcotics (CBN), valid until May 31, 2026.Advocate Sujay Kantawala and Darius Shroff for the company alleged that the overseas buyer subsequently raised a query regarding the shipment batch.The company arranged a fresh batch and submitted revised documents on June 1. However, by then, the original Export Authorisation had expired. The company filed the shipping bill on June 2 and the consignment was dispatched to the Air Cargo Complex at Sahar on June 4.Customs raised a query on June 5 regarding the expired authorisation. The company sought permission to retain the goods in a bonded warehouse while obtaining fresh authorisation.On July 2, Customs examined the consignment and issued summons to the company’s General Manager (Sales and Marketing) and Customs Broker under Section 67 of the NDPS Act.They were subsequently arrested on allegations of attempting to export Ketamine without a valid authorisation. Customs seized the consignment under Section 42 of the NDPS Act.Meanwhile, the overseas buyer obtained a fresh Import Certificate and the company applied for a fresh Export Authorisation. The CBN subsequently issued a fresh authorisation on July 9, valid until October 9, for export of the same quantity to the same consignee.Customs, however, rejected the company’s request for provisional release, stating that the fresh authorisation was issued after the shipping bill and seizure.The high court noted that the company had previously exported Ketamine with valid authorisations and that the fresh batch had been arranged following the buyer’s query.The court observed that the goods were never actually exported during the period when the authorisation had expired and that the company subsequently obtained a fresh authorisation from the competent authority.The court held that, in the peculiar facts, the delay in obtaining the authorisation was technical and permitted provisional release. The court clarified that the Customs authorities could continue adjudication and criminal proceedings in accordance with law.
