Bombay HC Tightens Screws on Cosmetic Importers – Licence Lapses Bar Re-Export Relief

Section 111 of the Customs Act – Embargo on Cosmetics for re-export and proceeding for confiscation.

The petitioner – importer of cosmetics and perfumes had imported consignments of cosmetics and FMCG totalling to Rs.10,09,94,219/- from UAE.

We are hence in agreement with Mr. Mishra, learned counsel for the Revenue drawing the Court’s attention to the reply affidavit, to contend that there was never an intention of the petitioner that the goods be imported only for the purpose of warehousing and/or re-export. Such case of the petitioner appears to be a complete afterthought being presented before the Customs Authorities as also before this Court, that the goods be permitted to be re-exported as they were not meant to be cleared for home consumption.

The warehousing scheme exists precisely to enable such lawful holding of goods pending compliance.

the present case needs to be considered on the conspectus of a conjoint application of the provisions of the Customs Act, the Drugs and Cosmetics Act, 1940 and the Cosmetics Rules 2020. It is clearly seen from the aforesaid provisions as applicable to the imports in question, that on such goods duty of customs would be leviable under the Customs Act, if the same were intended to be cleared for home consumption, hence would be dutiable goods within the meaning of Section 2(14) of the Customs Act.

In such circumstances, applying the statutory provisions as discussed hereinabove, to the goods in question, which were imported by the petitioner without a license, the legal character of the goods certainly is of these goods being “prohibited goods” as defined under Section 2(33) of the Customs Act.

Judgment dated 9.3.2026 of the High Court of Bombay in Writ Petition No.957 of 2026 of Glamstone Cosmetics Pvt Ltd   Vs.   The Union of India and others