2016 (8) TMI 578

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... notice was issued to M/s Sangfroid Pharma Pvt Ltd, manufacturer of patent and preparatory medicaments as job-worker for loan-licenses of M/s N R Jet Enterprises, M/s Glaxo India Ltd and M/s Burrough Wellcome India Ltd, on the ground that the trade discount allowed to wholesalers/retailers of the loan-licenses was not specifically noted in the price declaration; allegedly, the price was merely declared as net of trade discount implying that the same was not passed on to the recipient of the medicaments. The duty liability thus allegedly evaded was computed as Rs. 70,65,907/- on claimed discount of Rs. 4,78,61,920/- for the period from September 1999 to July 2003. 3. The agreement between the job-worker and the loan licensees required suppl....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ould appear that the wholesaler/retailer makes payment to the loan licensee. There is no indication in the show cause notice to suggest that wholesaler/retailer was required to make payment to the job-worker. We also note that there is no reference to the manner in which the duty liability was compensated by the loan-licensee. The job-work charges are only one element of the total cost/price of cleared goods with the major portion being expended by the loan-licensee. Apparently, the price at which the wholesaler/retailer is to be supplied is determined by the loan-licensee who also assumes the responsibility for complying with the procedure laid down in the Central Excise Rules. It is difficult to conclude that the job-worker is in receipt ....