TaxTMI 
TaxTMI 
TaxTMI 
2015 (4) TMI 314
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....pellant in addition to manufacturing the goods on their own account which were being cleared by affixing their own brand name, were also manufacturing the goods of other persons called "loan licensees" under job work agreement and those goods being manufactured for the "loan licensees" were being cleared by affixing the loan licensee's brand name and in respect of those clearances, the duty at the normal rate was being paid. Beside this, the appellant also as loan licensee, were getting their goods manufactured through other manufacturers under job work agreements and those manufacturers were clearing the goods by affixing the appellant's brand name and were paying duty at the normal rate on the same. The Department's case again....
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....n which loan licensees brand name was being affixed a getting their goods manufactured as a loan licensee through manufacturers, that the appellant for manufacture of the medicines for loan licensees had entered into a job work agreements with them under which the raw material, manufacturing plan etc , was being given by the loan licensees and the manufacture was under the loan licensees' supervision, but the factory and other infrastructure of the appellant was being used and as such the loan licensee had not taken the appellant's factory or a shift on lease, that for manufacture of the medicines by the appellant as a loan licensee through other manufacturers, the appellant had entered into similar job work agreements with them und....
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....factory premises or a shift ; (b) The goods are being manufactured by the loan licensee out of the raw material etc., supplied/ brought by him, and (c) The medicines are being manufactured under his own supervision, that these conditions for treating the loan licensee as a manufacturer, as prescribed by Hon'ble Gujarat High Court in the case of Indica Laboratories Pvt. Ltd vs UOI reported in 1990 (50) ELT 210 (Guj.) are not specified in this case, that this is clear from the terms of the agreement mentioned in para 11( i ) of the Show Cause Notice, that the agreement of the appellant as a loan licensee with other manufacturers were also on the same terms, that in view of this, the value of the clearances of the goods manufactured by ....
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....pecified period or hired a particular shift and, that even if, the goods are manufactured for the loan licensee out of the raw material supplied by him and as per his manufacturing plan and under his direct supervision, the loan licensee would have to be treated as an independent manufacturer and in that case in view of the provisions of clause 2(v), the value of clearances of the goods manufactured by loan licensee would have to be included for the purpose of determining the aggregate value of the clearances for home consumption even if the goods manufactured and cleared for loan licensee were bearing the loan licensee's brand name. He, therefore, pleaded that there is no infirmity in the impugned order. 4. We have considered the subm....
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....ncluded for determining the aggregate value of the clearances of the excisable goods for home consumption by the appellant. Similarly, another point of dispute is as to whether the value of the goods got manufactured by the appellant as a loan licensee through other manufacturers is also to be included in the aggregate value of the clearances of the excisable goods for home consumption by the appellant. There is no dispute that in respect of the goods being manufactured by the appellant for loan licensees and on which the loan licensees brand name was being affixed, the duty had been paid by the appellant at a normal rate. 5. The basic point of dispute in this case is as to whether in respect of the goods manufactured in the appellant'....