9911796707
TMI Blog1995 (9) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... d.] Ltd., (vi) M/s. SOL Pharmaceuticals Ltd., (vii) M/s. Okasa Ltd. and (viii) M/s. Eskayef Ltd. Proceedings were drawn both for under valuation of the goods as also for non-compliance with the requirements of Notification No. 305/77. So far as the demand based on valuation is concerned, the learned lower authority in para 73 has held that no differential duty demand was required to be raised taking into consideration the facts and circumstances of the case. The main demand in the show cause notice has been raised against M/s. Kanpha Labs, the first appellant, and others have been penalised for violation of the principles of Notification 305/77 read with Rule 174A of Central Excise Rules and have been penalised each Rs. 1,00,000/- under Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv) M/s. Unichem Laboratories Ltd. and (v) M/s. SOL Pharmaceuticals Ltd. - are taken up for disposal today. 4 The learned Advocate Shri Parameshwaran is representing all the cases except M/s. SOL M/s. SOL has not responded to the notice and there is also no request for adjournment. However, since the issue involved is common as the penalty on M/s. Eskayef also arises out of the same facts, the appeal of the M/s. Eskayef will be dealt with after the order in respect of the other 5 is passed. Pleading on behalf of the 5 appellants, the learned Advocate pleaded that the appellants were getting the goods manufactured from M/s. Kanpha Labs on loan licencee basis on terms of Notification 305/77. He pleaded that all that the Notification requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found to be acceptable by the Department and therefore the question of taking any action for not complying with the requirements of Notification 305/77 read with Rule 174A would not arise. He has pleaded that the learned Collector in his finding portion has held as under : Taking into consideration all the facts and circumstances of the case and aforesaid findings, I hold that M/s. Kanpha Labs and other loan licencees have contravened the provisions of Central Excise Rules as alleged in the show cause notice so far as Notification No. 305/77 is concerned during the period 1986-87 to October, 1990 as well as Rule 174A during the same period. I also hold that M/s. Cipla, Bombay, M/s. Anglo-French Drug Co. Ltd., Bangalore, M/s. Unichem La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was put to the learned DR that when the learned lower authority has accepted the price declared in respect of the goods in question, how it can be said that there was suppression of any fact for arriving at the correct assessable value. 6. I have given a careful thought to the pleas made by both the sides. As seen from the order of the learned lower authority, the appellants have been penalised for non-furnishing of the information and non-compliance with the requirements of Notification 305/77 read with Rule 174A of the Central Excise Rules. I had asked both the sides during the course of the hearing whether M/s. Kanpha s factory was taken over on lease by these appellants for the manufacture of the goods by the respective appellants, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the declaration filed in regard to the price list or classification list by M/s. Kanpha Labs In this view of the matter, therefore, I hold that the information furnished by M/s. Kanpha Labs which can be taken to have been furnished at the behest of the appellants was correct, The notification does not set out any terms for any declaration to be filed by the loan licencee with the Central Excise Department. The Department in the present case has been fully informed that the goods had been cleared by M/s. Kanpha by endorsements on the price lists and classification list that the goods covered by these were for the appellants herein. The learned JDR has verified these endorsements and has accepted the same to be there. There is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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