9911796707
TMI Blog1999 (7) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... of Notification 48/77, dated 1-4-1977. The Assistant Commissioner had allowed the benefit and therefore the appeal. 3. Brief facts of the case are as follows. M/s. Ethnor Ltd. cleared goods on free physicians samples without payment of duty in pursuance of Notification 48/77, dated 1-4-1977. According to the explanation of the Notification "manufacturer" means : (a) Where it is a company within the meaning of the Companies Act 1956 (1 of 1956) a company. (i) Which does not hold any share in the capital of any foreign company; and (ii) No part of the capital of which is held by a foreigner or a foreign company. It was fell that there was contravention of the later part of the explanation of the notification viz. (a)(ii). Followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the total of 10,000 shares of Ethnor Ltd., 9980 shares were held by Johnson & Johnson (I) Ltd. and 20 shares were held by Stock Traders Pvt. Ltd. This proves that no part of the share capital of Ethnor has been held by the foreign company. (c) Both the conditions under the explanation to the notification must be read as conjunctive and not disjunctive. (d) Reliance was placed on Supreme Court Judgement in the case of UOI v. Suhrid Geigy - 1999 (107) E.L.T. 579 (S.C.). 6. I have carefully considered the submission made in appeal and by the respondents at the time of hearing. 7. A foreign company has been defined under Section 591(1) of the Companies Act, 1956. On perusal of Section 591 it is clear that to be termed as "Foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dian Companies Act, 1913 or any other Indian Acts set out therein. From the illustration that is given it is clear that Ethnor is a subsidiary Company. 10. From 5-4-1957 and at the relevant time Ethnor Ltd.'s entire share holding of 10,000 equity shares was held by only two Indian Companies viz. Johnson & Johnson Ltd. (9980 equity shares) and Stock Trader Pvt. Ltd. (20 equity shares) making the total of 10,000 equity shares. Thus out of the total number of shares i.e. 10,000 of Ethnor Ltd., 9980 shares were held by Johnson & Johnson (I) at the relevant time. Since Ethnor is a subsidiary company part of the share capital of Ethnor can be treated to have been held by the Foreign Company in the light of discussion in earlier paragraph. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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