2016 (3) TMI 400

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..... P.M. SALEEM, MEMBER (TECHNICAL) For the Petitioner : Shri Aditya Tripathi, Advocate For the Respondent : Shri L. Tendupatra, A.R. ORDER PER: P.M. SALEEM Common issue is involved in both the appeals and hence taken up together for disposal. Briefly stated, the facts of the case are that the Appellants are engaged in the manufacture of P&P medicines which are chargeable to Central E....

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....07, both the Appellants viz. M/s Saga Laboratories and M/s Elite Pharma Pvt. Ltd had cleared such goods valued at Rs. 96,81,060.00 and Rs. 1,01,94,021.00 respectively, without payment of duty. Revenue issued the impugned show cause notices, dt.04.05.2007, demanding duty of Rs. 15,80,868.00 from M/s Saga Laboratories and duty of Rs. 17,01,563.00 from M/s Elite Pharma Pvt. Ltd. on such clearances wh....

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....s in view of the decision of CESTAT Bangalore in the case of Vinayaka Mosquito Coil Mfg. Co. (supra). He also contends that they were under the bonafide belief that Central Excise duty was not payable on such free supply of goods. The issue was finally settled in 2007 by the decision of Larger Bench of the Tribunal in the case of Indica Laboratories Pvt. Ltd Vs Commissioner, Central Excise, Ahmeda....

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....he records and the submissions of both the sides, we find force in the arguments of the learned Advocate that at the relevant time, there was sufficient reason for the Appellants to have had bonafide belief that duty is not payable on the free supply of goods in view of the decision of the Tribunal in the case of Vinayaka Mosquito Coil Mfg. Co. (supra). As the issue was under dispute and was final....