TaxTMI 
TaxTMI 
2016 (12) TMI 1270
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....d in the manufacture of life saving drugs or medicines given in clause 81(A) subject to fulfilment of condition no. 7 as appended to the said notification. As per the said condition, the importer is required to avail the procedure set out in the Customs (import of goods at concessional rate of duty for manufacture of excisable goods) Rules, 1996. The appellant after import of the bulk drug i.e. PSS used the same for manufacture of piprapen injection at the premises of loan licence of the appellant i.e. M/s Savill Pharma Labs Pvt. Ltd., which is located in Goregaon. The appellant has obtained the registration certificate as per the Rule 3 of the Customs Rules, 1996 at Malad division i.e. under jurisdiction of loan licensee. The department ha....
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....ced reliance on the judgment of G.R. International reported at 2007 (210) ELT 604 (Tri.-Chennai). He submits that the intention of the notification is end use of the imported product for the specified product, so far the said condition is fulfilled, notification is available. He placed reliance on the judgment of Tribunal in the case of JCT Electronics Ltd. [2010 261 ELT 267 (Tri.- Del.)] and Electronic Research Ltd. [2005 (187) ELT 495 (Tri.-Bang.)]. He further submits that even their product is also qualified exemption under serial no. 81(A) for which the Customs Rules, 1996 is not applicable, which was not considered by the lower authorities on the ground that this entry of notification was not claimed by the importer of the ....
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....(import of goods at concessional rate of duty for manufacture of excisable goods) Rules, 1996 whether goods can be used in the importer s own factory or also can be used in the job worker factory. There is no dispute the goods were used on behalf of the appellant in their loan licensee (job work factory) on behalf of the appellant only. The ownership of goods remained with the appellant right from import of the goods up to the use in the final product. In this position, in our view the imported goods used for the specified purpose, the condition of end use stands complied with. The whole objective of the duty free imported bulk drug is that it should be used in the manufacture of life saving drugs or medicine. In our view, if this condition....
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....3 uses the expression his factory . In other words the lower authorities interpret that the importer should own a factory and he has to use the imported material only in his factory. Otherwise, the importer would not be entitled for the concessional assessment under the above Notification. If the importer uses the imported goods in a factory belonging to some other person he would not be entitled for the concessional assessment. The Tribunal's decision in the Panacea Bio-tech Ltd. case relied on by the Commissioner has broadly followed the above line of argument. In our view, the above approach is not at all in consonance with the philosophy of liberalisation and globalisation embraced by the Government of India in all its policies rela....
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....person utilising the manufacturing facilities of another. In order to be a manufacturer one need not own a factory. The practice of more than one manufacturer using a factory is recognised as can be seen in the SSI Notification with regard to clubbing of clearances. The expression his factory should be interpreted to mean the factory where the importer wants to utilise the imported goods in terms of the Notification. The Department can not insist on ownership of the factory and deny registration for the purposes of the Notification. The Tribunal, in the case of Commissioner of Central Excise, Bangalore v. Electronic Research Ltd. cited by the ld. Advocate, has held that literal meaning of statute should be abandoned if it leads to unjustifi....