9911796707
TMI Blog2007 (11) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... ls and packing materials to the job workers who manufactured medicines in accordance with specifications given by them. The job workers availed credit of duty paid on raw materials and packing material. Medicines so manufactured are cleared by the job workers on payment of duty on the basis of cost of raw materials plus manufacturing expenses including manufacturing profit as per the Supreme Court decision in Ujagar Print's case [1989 (39) E.L.T. 493 (S.C.)}. The present case pertains to medicines manufactured on job work basis by M/s. Niramay Pharma (NPPL) having its factory at Nashik. They were however issued show cause notices alleging that M/s. Glenmark Pharmaceutical only is the manufacturer of the said medicines at the premises ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. v. Commissioner of Central Excise, Goa - 2006 (203) E.L.T. 567 (Tri. Mumbai). In all these cases the test laid down is whether the premises have been hired shiftwise or otherwise by the loan licensee which in the present case is M/s. Glenmark Pharmaceuticals and whether the goods are manufactured under the supervision and control of raw material supplied. If it is found that the goods are manufactured under the control and supervision of the raw material supplier who hired the premises shiftwise and otherwise, then the raw material supplier is to be treated as manufacture and not otherwise. 4. Learned D.R. has argued that since in this case as per agreement M/s. Glenmark Pharmaceuticals was to supply the necessary raw materials includin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... query from the Bench, learned D.R. agreed that the facts and circumstances of the cases and the agreement entered between the raw material supplier and job worker were same as in the case of Cosme Remedies (cited supra). Learned D.R. however argued that the agreement is at variance with the application made to FDA authorities for grant of licence to manufacture medicines on loan basis as in the application M/s. Glenmark Pharmaceuticals have given an undertaking that they shall be hiring the premises of M/s. Niramay Pharma to manufacture the medicines and therefore M/s. Glenmark Pharmaceuticals only have to be considered as manufacturer of the medicines and duty is required to be paid as the price at which the medicines are sold by M/s. Glen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been brought on record by the adjudicating authority. In view of this they cannot be considered as a manufacturer of goods and in support thereof they referred to the decision of the Tribunal in the case of Cosme Remedies and Gujarat High Court decision in the case of Indica Laboratories and others. 5. We find that it has been admitted that facts and circumstances of the case including the terms of agreement are similar to the one to involving in the case of Cosme Remedies wherein after analyzing several decision it was clearly held that unless there is an evidence to the effect that the premises of the job worker has been hired shiftwise or otherwise by the raw material supplier the goods are manufactured under the control and supervisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
