TMI Blog2018 (5) TMI 2045X X X X Extracts X X X X X X X X Extracts X X X X ..... thod . In COMMISSIONER OF CENTRAL EXCISE, GOA VERSUS M/S. COSME FARMA LABORATORIES LTD. [ 2015 (4) TMI 355 - SUPREME COURT ] it has been held by the Hon'ble Supreme Court that Once it has been determined that the job workers are the manufacturers, the assessable value of the goods would be a sum total of cost of raw material, labour charges and profit of the job workers, as per circular No.619/10/2002-CX dated 19th February, 2002 and the law laid down by this Court in the case of Pawan Biscuits ( 2000 (7) TMI 78 - Supreme Court ) and other cases. In such a case, the price at which the respondent brand owner sells its goods would not be the assessable value because the duty is to be paid at the stage at which the goods are manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f central excise on the price by which M/s Alkem Laboratories Ltd sold the finished goods to their customers. However, after June 2003, they adopted cost construction method which, being disputed by the department, led to the proceedings that culminate in the present appeal. 4. We have heard Learned Counsel for the appellant at length as well as the response of the Learned Authorised Representative. 5. Learned Counsel placed reliance on circular no. 619/10/2002-CX dated 19th February 2002 and the decision of the Hon ble Supreme Court in Ujagar Prints v. Union of India [1988 (38) ELT 535 (SC)], Commissioner of Central Excise, Goa v. Cosme Farma Laboratories Ltd [2015 (318) ELT 545 (SC)], Collector of Central Excise, Baroda v. MM Kham ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n standards and if there is any defect in the drugs manufactured by him or someone working under him, he becomes responsible or liable under the said Act. There is also a provision in the said Act with regard to getting the drugs manufactured by someone else. So a manufacturer, who is having a license to manufacture, can get the drugs/medicaments manufactured by another person under his supervision and he would be liable if the drugs manufactured by someone else are not as per the prescribed quality. Though the drugs/medicaments might not have been manufactured by the one who is a licensee and the actual manufacturer is guilty of manufacturing substandard drugs, the licensee becomes responsible and liable under the provisions in the said Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amples at each stage to ensure that the standards prescribed by him are being followed especially so in the case of drugs where he ultimately has to be held liable for any deficiency in quality where the human lives are involved. No evidence has been brought out to show that the premises had been hired on a shift basis or otherwise and on the contrary, the agreement clearly shows that the manufacturing charges will be paid at the rate specified in the Schedule on the basis of per unit and there is no reference to payment on the basis of any shift or any particular period. The agreement may be at variance with the undertaking given to the Drug Licensing Authorities but there is no evidence that the agreement has been departed with and that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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