2011 (1) TMI 717

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....Injections. These injections were cleared by the appellants on payment of duty when they were sold under the brand name  of 'Conampi Injection' under heading 3003.10 of the Central Excise Tariff Act, 1985.  But when these injections were cleared bearing generic name no duty was paid on them, but the appellants reversed 8% of the sale price on these clearances. During  the course of manufacture of the above said injections, an intermediate  stage comes into existence i.e. Ampicillion Sodium powder is manufactured by the appellants and which have been captively consumed to manufacture the final products viz., Ampicillion Sodium Injections. 3. Following show-cause notices were issued to propose the demand of duty on the A....

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.... of specified goods i.e. medicaments falling under heading 3003 are the goods specified in the notification. Hence, the goods captively consumed in the manufacture of medicaments falling under Chapter 3003 of the First Schedule of the CETA,1985 are exempts from whole of the duties of the Central Excise.  Therefore, no demand is sustainable after 23/07/96.  For the period prior to 23/07/96, he submitted that the appellants have reversed an amount approximately of Rs.6.00 lakhs, which is more than the demand proposed in the show-cause notice and no demand is sustainable prior to that also. He further sought the benefit of Notification No.7/94-CE dated 01/03/94 wherein it is stated that all goods falling under Chapter 29, manufacture....

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.... Notification No.10/96-CE dated 23/07/96, which exempts of goods falling within the schedule of  CETA, 1985 from whole of the duty of excise leviable thereon, which is specified in the said schedule, subject to the condition that the said goods are consumed within the factory of their production in the manufacture of goods specified in Column No.3 of the table and at Serial No.7 of the said notification in Column No.3 the description of the goods is medicaments. It is not in dispute that the appellants are the manufacturer of medicaments.  Hence, the appellants are entitled for the benefit of the said notification by giving the benefit of the said notification, no demand is sustainable for the period from 23rd July 96 onwards.&nbs....