2015 (10) TMI 1355

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....Ltd (for short 'M/s IPL')supplied the raw material to the loan licencee/job workers, who are the co-appellants in the present appeals, for manufacturing Medicaments which is a proprietary medicine classifiable under Chapter Heading 30.03 of Central Excise Tariff Act, 1985. The said job workers/loan licencee paid duty on the basis of formula prescribed by the Hon'ble Supreme Court in the case of M/s Ujagar Prints - 1988 (38) ELT 535 (SC). They have paid the duty on the cost of raw materials and conversion charges. There is no dispute that prior to 01.03.2003, the job workers were paying duty on the basis of sale price of M/s IPL. After 01.03.2003, the job workers started paying duty on the basis of M/s Ujagar Prints, following the Boards ci....

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....d on the basis of minority view in the said decision. He also drew the attention of the Bench to the relevant portion of the Adjudication order to establish that the fact of the case in the case of M/s Cosme Farma Laboratories Ltd (supra) and the present appeals are identical. He submitted that there is no suppression of facts with intent to evade payment of duty. It is further contended that the Adjudicating authority has no jurisdiction to decide the matter in respect of the various job workers situated in different states of the country. Alternatively, the proceedings should be initiated against the various job workers who are the manufacturers of the goods, as per the provisions prior to 01.03.2003. He filed the compilation of case laws....

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....ure has to be carried out as per the price indicated by the raw material supplier and as per the specifications laid down by the raw material supplier and the raw material supplier has a right to inspect and draw samples at each stage to ensure that the standards prescribed by him are being followed especially so in the case of drugs where he ultimately has to be held liable for any deficiency in quality where the human lives are involved. No evidence has been brought out to show that the premises had been hired on a shift basis or otherwise and on the contrary, the agreement clearly shows that the manufacturing charges will be paid at the rate specified in the Schedule on the basis of per unit and there is no reference to payment on the ba....