1998 (9) TMI 319

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....ondents. [Order per : A.C.C. Unni, Member (J)]. -  This is a Departmental Appeal filed against the order of the Collector of Central Excise (Appeals), Hyderabad dated 17-1-1994 by which the Collector (Appeals) had set aside the order of the Assistant Collector demanding a duty of Rs. 2,14,474/- and imposing a penalty of Rs. 1,000/- on the respondent. 2. When the matter was calle....

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....d. was a SSI Unit eligible for exemption under Notification No. 175/86. The Department however alleged that M/s. Pharmasia Ltd., the loan licensees, had effected value of clearances in excess of Rs. 75 lakhs. On that basis, the appellants were issued a show cause notice demanding differential duty based on normal rate of 15% for the clearances effected on behalf of the loan licencees. The Assistan....

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.... by including clearances of goods which had suffered duty at normal rates. Taking note of the submissions made on behalf of M/s. Targof Pure Drugs (P) Ltd. that the loan licensees for whom they were claiming the concessional rate of duty is eligible for the same having regard to the Gujarat High Court decision in India Laboratories Pvt. Ltd. v. Union of India reported in [1990 (50) E.L.T. 210 (Guj....

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....ds, the clearances made by the respondents M/s. Targof Pure Drugs have to be treated as clearances made for a unit which is ineligible for concessional rate of duty under Notification No. 175/86. Therefore, the respondents are liable to pay the effective rate of duty @ 15% for the value of clearances exceeding Rs. 75 lakhs. Distinguishing the decision in the Gujarat High Court judgment in India La....