2016 (6) TMI 576

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....valuation of goods manufactured by the respondent herein. The respondent is a manufacture of various pharmaceutical products and has also undertaken to produce medicaments on behalf of M/s.Maharashtra Antibiotics and Pharmaceuticals Ltd., (herein after referred to as MAPL) under loan license arrangements, as per in terms of an agreement/authorisation from MAPL. While manufacturing such goods of MAPL, the appellant has procured the raw materials himself and discharged the duty liability based upon the cost of production and the profit margin. The duty paying documents indicate that MAPL as a purchaser and the appellant as a supplier. Subsequently, MAPL clears the same pharmaceutical goods from their depot at higher price. It is the case of t....

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....ism. As per this clause the price of the product between the appellant and MAPL has to be such that there is a margin of 12% to MAPL which in effect means that the price to MAPL has to be less than 12% of MAPL price to their distributors. This mechanism is not a mere formality in fact this has been translated in to actual practice by them as is evident from the work sheet forming part of the SCN. This work sheet shows the difference of 15% to 16% between the price of MAPL to distributors and price to MAPL by the appellant No.1. (xiv) There is neither any allegation nor any suggestion that the appellant No.1 has got any extra consideration from MAPL over and above the price quoted between them. There is no relationship between the a....