AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2009 (6) TMI 11
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....with the bottle containing drops as an input used in or in relation to manufacture of final product namely Novamox product (Pediatric drops). However, the department objected this on the grounds that this droppers are separately kept in the cartons sealed bottle of the Pediatric drop. These droppers are neither used in the manufacture of pediatric drop nor used in relation to the manufacture of the final product. 2. Show cause notice was issued to the Respondents and the case was adjudicated upon. The Assistant Commissioner disallowed the credit of duty paid on plastic droppers. Appeal against the said Order of the Assistant Commissioner was also rejected by the Commissioner (Appeal) vide his order-In Appeal No.GS/1023/BI/93 dated 20.11.19....
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....Dropper is not a packing material used in relation to packing of the pediatric drops. It is a facility given to the consumer for using it after they open the bottle for use. Packing of a dropper along with a bottle of pediatric drops is not a 'MUST', nor can it be stated that, it is a component of such drops. Hence, basic requirement of Rule 57A is not satisfied as the items are not in any way used either in the manufacture or in relation to the manufacture of final product. As such MODVAT cannot be admissible, merely because they are sent with the final product including their value. 6. On the other hand, it is the contention of the respondent company that the said Plastic Dropper is invariably contained in the printed carton of the....
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....y notification in the Official Gazette, specify in this behalf, for the purpose of allowing credit of any duty of excise or the additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975) as may be specified in the said notification (hereinafter referred to as the "specified duty") paid on the goods used in or in relation to the manufacture of the said final products (hereinafter referred to as the "inputs") and for utilising the credit so allowed towards payment of duty of excise leviable on the final products, whether under the Act or under any other Act, as may be specified in the said notification, subject to the provisions of this section and the conditions and restrictions that may be specified in the notification : ....
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....er, shall amount to 'manufacture'." (Emphasis supplied) 8. The learned Counsel for the respondents pointed out that by the Drug Controller of India had addressed a letter dated 22.4.1992 advisory to all the Drug Controllers in the country pointing out that the Indian Academy of Pediatrics, Bombay had brought to their notice that some manufacturers were not providing a measure with oral liquid preparations. The letter said that these measures are necessary for proper administration of the drug in desired quantities as advised by the medical practitioner. Therefore the Drug Controller of India observed that these dispensers should be transparent and of clear plastic and the marking on these dispensers should be clearly visible. In view of th....
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....d to convert the powder into liquid. For purpose of dispensation or administration of the drugs, another cap with the dropper has to be affixed on the said bottle and with the said dropper, drops can be administered. Without such a dropper, it would be very difficult for the consumers to administer the drops in proper quantity as per the medical prescription. Therefore, for administration of the drug in the proper quantity as per prescription, it is absolutely necessary to have such a dropper with the bottle. Further as pointed out earlier, the Drug Controller of India has also given advice and the drug manufacturers cannot ignore that advice for the purpose of marketing their product. In view of Note 5 to Chapter 30 " for adoption of any o....
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....n Collector vs. Jay Engineering Works in upon H.M.M. Ltd. Versus Collector of Central Excise 1994 (74) ELT 19 (S.C.), Metal screw cap put on Horlicks bottle treatable was treated as a component part of the product and eligible for benefit of set-off of duty. Relying on these authorities, the CEGAT in the matter pertaining to M/s. Heal Well Pharmaceutical Bombay held that where dropper is provided in the carton along with bottle containing the drug it amounts to manufacture and the manufacturer is entitled to credit of duty paid on such product being input of the firm product. The said Judgment was relied upon by the CEGAT in the present matter and the appeal was allowed. 11. The learned Counsel for the Revenue placed reli....