2017 (6) TMI 533

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....1. The Appellants are engaged in the manufacture of Pharmaceutical products falling under Chapter 30 of Central Excise Tariff Act, 1985. The manufactured goods are subjected to duty by determining its value under Section 4A of Central Excise Act, 1944 i.e. on MRP based assessment and also under Section 4 of Central Excise Act, 1944 in relation to medicaments supplied to the Government hospitals and institutional buyers viz. Railway, BHEL, BPCL etc. The Revenue objected to the method of determination of value under Section 4 of Central Excise Act, 1944 for the supplies to their buyers. Alleging that under Drugs (Price Control) Order, 1995, the Appellants are required to affix the MRP on the medicaments even sold to these buyers, accordingly,....

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....utical industries i.e. not printing RSP on the medicament strips cleared to the hospitals and other institutional buyers. It is his contention that since the conditions laid down under Section 4A of Central Excise Act, 1944 have not been satisfied, therefore they have rightly assessed the goods under Section 4 and not Section 4A of Central Excise Act, 1944. Further, he has argued that the demands since issued invoking extended period of limitation, when there is no suppression or mis-declaration of facts and the goods were cleared on payment of duty under Section 4 of Central Excise Act, 1944, the demands are barred by limitation. 5. Per contra, the ld. Authorised Representative for the Revenue argued that there is no specific exemption ....

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....exemption allowed to the Appellant under Order 25 of Drugs (Price Control) Order, 1995, the Appellants are required to print/affix retail sale price(RSP) on the primary packing of the medicaments. Hence, irrespective of the fact whether they print RSP on the medicaments or otherwise, the goods are liable to be assessed under Section 4A of Central Excise Act, 1944. On the other hand, the learned Advocate for the Appellants vehemently argued interpreting the provisions of Order 15 of Drugs (Price Control) Order, 1995 that since the goods are not offered for retail sale/re-sale and meant exclusively to be consumed by the hospitals and institutional buyers, and their intention has been clearly displayed on the packing itself, indicating "not fo....