Manufacturer RGR not liable for duty, penalties waived based on Ujagar Prints formula

The Tribunal held that the appellant RGR was the manufacturer discharging duty correctly, based on the Ujagar Prints formula, setting aside the duty demand on NPIL's selling price. As RGR fulfilled its duty liability appropriately, penalties on both appellants were deemed not imposable. The impugned order was set aside, and the appeals were allowed with consequential relief if any.

---

---

Issues:
- Duty demand from the appellant RGR
- Penalty imposition on both the appellants

Analysis:
1. Duty Demand from Appellant RGR:
The case involved an appeal against the order demanding duty from RGR Pharmaceuticals ALS Derabassi and imposing penalties. The appellant, RGR, was a job worker of medicaments for Nicholas Pharmaceuticals (NPIL). An investigation revealed that RGR was manufacturing goods for NPIL, leading to duty demands based on under-valuation of goods. The appellants contested, arguing that RGR was the manufacturer/job worker, paying duty as per the formula in the Ujagar Prints case. The respondent contended that NPIL was the real manufacturer based on agreements and labeling. The Tribunal analyzed similar cases like Glenmark Pharmaceuticals and Dolphin Laboratories to determine the manufacturer. Ultimately, the Tribunal held that RGR was the manufacturer discharging duty correctly, as per the Ujagar Prints formula, and set aside the duty demand on NPIL's selling price.

2. Penalty Imposition on Both Appellants:
The Tribunal further addressed the issue of penalty imposition on both appellants. Considering that RGR had correctly paid duty as the manufacturer, the Tribunal deemed the penalty on both appellants as not imposable. Consequently, the impugned order was set aside, and the appeals were allowed with consequential relief if any. The decision was based on the findings that RGR fulfilled its duty liability appropriately, and therefore, penalties were not warranted.

---