TaxTMI 
TaxTMI 
1996 (2) TMI 460
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....the same without payment of duty after exceeding the exemption limit under Notification No. 175/86. 3. Arguing for the appellants ld. Advocate submits that what they manufacture is non-sterile sutures leviable to duty under Heading 4201.90 and the same is exempted from duty under Notification No. 279/88, dated 16-11-88. They send these pouches to B.A.R.C. and Shri Ram Institute of Industrial Research for the purpose of sterilisation as they have no equipment for sterilisation. The excise duty if at all was payable by these Institutes since it is at that stage non-sterile catguts became excisable through process of sterilisation. Admittedly they receive back these pouches after sterilisation and they re-pack them for sale but that by....
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....ere received back in the appellants factory for the purpose of further packing these goods. Labels on the small cartons in the form in which the goods were sold clearly indicates that the goods are manufactured by the appellants. These also bore on themselves the batch No. etc. The ownership of the goods throughout remains with the appellants and after receipt of goods the appellants not only re-pack the goods but are also required to carry out certain tests. All this indicates that the actual manufacturer was only the appellant and the two Institutes only carried out a certain process. After carrying out sterilisation the goods did not become marketable at the premises of these Institutes since these goods, according to letters from these ....
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....C.G. Machines and then the material was inspected and packed into individual pouches. These pouches were sent for sterilisation to B.A.R.C., Bombay and Shri Ram Institute for Industrial Research, Delhi. The sterilisation process took 15 to 20 days. After the material was received back, the same was repacked in final packings for dispatches. They paid Rs. 300/-per box weighing approx.14 kgs. Each". 9. From this it is clear that they are engaged in manufacture and sale essentially of sterile surgical catguts where process of sterilisation was conducted at Shri Ram Institute for Industrial Research and B.A.R.C. In fact, the record indicates that they had also a Drug licence for the manufacture of sterile surgical catguts. The sam....
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....olding that there is no proof on record to establish that the particulars given by the appellants related to the goods which were actually manufactured by the appellants and finally exported. We are of the view that this approach in the circumstances was not merited. The fact of export can be established through shipping bills bearing endorsement that the goods were shipped on board. Once copies of these shipping bills were produced, the technicalities should not have been allowed to come in the way to deny substantive benefits to which the appellants were otherwise eligible. We do not, have on record, copies of shipping bills except list indicating the number of shipping bills and invoices. We, therefore, hold that if shipping bills indica....