2001 (2) TMI 362

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..... ufacture involves conversion of ethylene oxide into ethoxylate and its subsequent conversion into anti static oil. The initial conversion of ethylene oxide into ethoxylate was carried out at the appellant s factory at Panoli. 2. In March, 1996, the factory at Silvasa intimated Assistant Commissioner that it had made temporary arrangement at its factory at Panoli to partially manufacture organic surface active agent and organic chemicals falling under headings 3420.90 and 2905.90 of the Tariff on its behalf. It asked for necessary permission. The annexures to this application gave details of the raw materials, and had indicated that Panoli factory would manufacture the intermediate product from the ethylene oxide and the factory at Silvasa .....

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..... been sent to the factory at Silvasa. He therefore confirmed the proposal for duty, and imposed penalties on the company and the director. Hence these two appeals. 4. The contention of the common counsel for the two appellants is simple. He agrees that the Silvasa factory never received from its factory at Panoli ethylene oxide. This chemical was received directly by the Panoli factory. He however contends that ethoxylate manufactured at Panoli is cleared only to the factory at Silvasa. The Tribunal, in its decision in Lupin Labotatoreis Ltd. v. CCE - 1994 (71) E.L.T. 914 has found just such a situation as the present one covered by the provisions of the Rules, and said that it was not necessary, for Rule 57F(3) to apply, that the raw mate .....

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..... received first in the Silvasa factory. 6. That fact cannot justify denial of the facility under this rule. The Tribunal held that the provisions of Rule 57F(2) would be available to Lupin Laboratories Ltd. for consignments of Pencillin G which was sent from the place of importation directly to its factory at Ankleshwar, where they made into intermediate product 7ADCA, which was sent to the factory at Mandideep for manufacture of Cephalexin. The factual situation here is identical. Here too the factory at Silvasa informed the department that ethoxylate would be received directly at Panoli. The fact that the departmental representative emphasises that payment was made to Reliance Industries Ltd. for supply of ethylene oxide from the factory .....

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