TaxTMI 
TaxTMI 
2005 (7) TMI 249
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....ob worker of M/s. USV Ltd., Mumbai. They intended to adopt the valuation of goods manufactured by M/s. USV Ltd., in terms of Board Circular No. 619/10/02 dated 19-2-02, according, to which, the value of the goods manufactured on job work basis is required to be determined in terms of the ratio laid down by the Hon'ble Supreme Court in the case of M/s. Ujagar Prints Ltd. but, Revenue proceeded against the appellants on the basis of the decision of Hon'ble High Court of Gujarat in the case of Indica Lab Pvt Ltd. v. UOI reported in 1990 (50) E.L.T. 210 (Guj.) wherein it was held that in respect of P or P medicaments manufactured on loan licence basis, only the loan licensee should be treated as the manufacturer. In the present case, M/....
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....5 (S.C.)] and Pawan Biscuits case [2000 (120) E.L.T. 24 (S.C.)] holding that in the case of job work, it was the job worker who was the manufacturer in the eyes of law and not the raw material supplier. (iii) As per the Ujagar Prints case, decision, the cost of raw materials plus the cost of manufacture plus the job workers carried on private alone constitute the assessable value. (iv) The concept of loan licence arises under Drugs and Cosmetics Act and the Rules made thereunder and seen a concept under the Central Excise law. (v) The Commissioner ought to have appreciated that the test laid down by Indica Laboratories case was of utmost importance namely that it contemplated first that the loan licensee hired on ....
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....atories v. CCE - 1999 (105) E.L.T. 356 (T) (7) CCE v. Pharmacom Remedies (P) Ltd. - 2003 (156) E.L.T. 934 (vii) The Revenue had failed to produce any evidence to establish that M/s. USV were physically carrying out the manufacture of products in question at the appellants premises using their own labour or under their own control or supervision. (viii) In view of the Apex Court decision in the Pawan Biscuits case, the concept of additional control and the examination of the contract clause of the contract entered into by the raw material supplier and the process were not relevant in terms of the decision of the Hon'ble Tribunal in the case of ICI India Ltd. v. Commissioner [2001 (133) E.L.T. 600 (Tri. - Bang.)....
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....ire manufacturing process in their factory after receiving raw materials from M/s. USV. The agreement has got a termination clause also. According to Clause 13.2 cited, each party may terminate the agreement at any time by giving to either party three months notice in writing. The adjudicating authority has mainly relied on the Indica decision of the Gujarat High Court and held that M/s. USV are the manufacturers of the goods manufactured in the appellants premises. The Indica case, has been elaborately gone through in the Lupin Lab case. In the Lupin Lab case, the Hon'ble Tribunal observed as follows : "After considering the judgment of Indica Lab the Bench consisting three member held that unless such loan licencees get their....