TaxTMI 
TaxTMI 
2018 (5) TMI 2045
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....nd, the adjudicating authority ordered recovery of demand of Rs. 30,10,21, Rs.20,99,260 and Rs.26,89,521 respectively for the period from June 2003 to December 2003, January 2004 to June 2004 and July 2004 to January 2005, along with interest thereon, and imposed penalties of like amount on the assessee as well as Rs. 7,50,000/- and Rs. 8,00,000/- respectively in the other two noticees. 3. Briefly, M/s Alkem Laboratories Ltd, as 'loan licencee', dispatched raw materials and packing materials to M/s Alcon Industry Limited who manufactured 'patent and proprietary medicaments' in their capacity as 'job-worker'. Prior to June 2003, M/s Alcon Industries Limited had been discharging duties of central excise on the price by which M/s Alkem Labora....
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....ethod'. In re Cosme Farma Laboratories Ltd, it has been held by the Hon'ble Supreme Court that '18. At the outset, we would like to clarify that the term 'manufacturer' or the loan licensee used under the provisions of the Drugs and Cosmetics Act, 1940 has nothing to do with the manufacturing activity or term 'manufacture' under the provisions of the Central Excise Act, 1944. Both the Acts referred to hereinabove have been enacted for different purposes. The provisions of the Drugs and Cosmetics Act, 1940 pertain to manufacture of drugs and quality of the drugs, etc. The manufacturer of the drugs has to see that the quality of the drugs manufactured by him is as per certain standards and if there is any defect in the drugs manufacture....
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.... Court in the case of Cosme Farma Laboratories Ltd. (supra). We find that on the identical issue, the Tribunal in the case of Cosme Remedies Ltd. by majority decision held as under :- "28. As regards the view taken by learned Member (Technical) and Member (Judicial), I find that the agreement between the loan licensee and the job worker is very clear that the supervision and control will be that of the job worker only and as in every job work, the manufacture has to be carried out as per the price indicated by the raw material supplier and as per the specifications laid down by the raw material supplier and the raw material supplier has a right to inspect and draw samples at each stage to ensure that the standards prescribed by him are be....