2001 (7) TMI 531

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....ade, JDR, for the Respondent. [Order per : Gowri Shankar, Member (T)]. - ICPA Health Products Pvt. Ltd., the appellant was at the relevant time engaged in the manufacture of erythromycin stearate as a "loan licensee" for Abott Laboratories Ltd. The process of manufacture that was involved was conversion of thiocyanate into erythromycin base, which is reacted with stearic acid in order to obtain....

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..... The appellant tableted and cleared them on payment of duty. 2. The objection issued to the appellant was that in the light of these transactions which we have narrated, it was not permissible for Abott Laboratories to receive under Rule 57F(2) the same thiocyanate which it had cleared under Rule 57F(1). Therefore it was not permissible for the appellant to take credit of the duty paid by A....

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....rythromycin stearate was assessable at 5%. Hence if the erythromycin stearate had been cleared by Abott to the appellant, credit that would have been taken would be 5%. In that case, Abott would have been entitled to the credit at 15% of thiocyanate. There is thus no loss to government. That however is not material. What is material is that however strange or unusual the conduct of the parties, th....