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TMI Blog1997 (4) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... and returns the talcum powder through the supplier of the raw material. Each of the other assessees manufactures pharmaceutical products out of raw material supplied by other persons, and returns the finished products to the supplier of the raw material. 2. Each of the assessees had, prior to the clarificatory order of the Supreme Court in Ujagar Prints v. Union of India - 1989 (39) E.L.T. 493 (S.C.), been paying duty on the assessable value of the goods based on the wholesale price charged for the items by the suppliers of the raw material when they sold the goods. Subsequent to the decision of the Supreme Court, the assessees filed revised price lists. In these price lists, they indicated as the assessable value, the total of the cost o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is conclusion are those relied upon by the Bench of this Tribunal in Dr. Writer s Food Products Ltd. v. CC CE, Pune - 1996 (16) RLT 1. We are not able to accept the first point. In the cases before him there was, certainly manufacture in the sense that, raw materials supplied and product that emerged were different in name, character and use from the raw material supplied. But this is in fact the effect of manufacture. The ratio of the Supreme Court decision in Union of India v. DCM - 1977 (1) E.L.T. J199 (S.C.) is that for goods to be considered to have been manufactured for the purpose of levy of excise duty a new product must emerge which has distinct name, character and use. There can be no levy of excise duty unless there is manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the presence or absence of a brand name of the product has, in determining its assessable value when it is manufactured by a job worker. The presence of a brand name adds to the value of goods by appealing to the consumer on the basis of quality. The factors that contribute to such quality, such as superior raw material, exacting manufacturing requirements and vigorous testing, would already have been accounted for in the cost of raw material and processing charges. We do not see how the fact of use of a brand name add a new dimension to the product or the process rendering inapplicable the principle of Ujagar Prints. The Madras High Court in Asia Tobacco Company v. ACCE applied the principle in Ujagar Prints to cigarettes about which ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble value of the fabrics processed by the assessee, the extent of duty payable on the grey fabrics which were processed, but which was not paid, ought to be included. Confirming the finding that it ought to be included, the Bench applied the principles laid down in Ujagar Prints case. 8. The Tribunal in its decision in Dr. Writer s Food Products Ltd. v. CC CE, Pune had held that Ujagar Prints case would not apply to chocolates manufactured by Dr. Writer s Food Products Ltd. and supplied with its brand name to Cadbury, the supplier of the raw material. We have already discussed some of the reasons for which this decision has held that Ujagar Prints case will not apply. We note this decision (Dr. Writer s) has not been considered, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Writer s Food Products Ltd. for Cadbury would the same as the assessable value of chocolates manufactured and sold by Cadbury. This identical situation came up before the Madras High Court in Asia Tobacco Company Ltd. v. ACCE. The question before the Court was whether the value of cigarettes manufactured by Asia Tobacco Company Ltd. and supplied to M/s. ITC, who supplied the raw material, should the value at which ITC sold similar brand of cigarettes it manufactured (ITC). The Court did not accept this contention and held that in a situation where a job worker manufactured the goods on behalf of another person, the margin of profit of the other person would not be includible in the assessable value of the goods manufactured by the job wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o not think that is necessary for the following reason: The decision in Dr. Writer s Food Products Ltd. v. CC CE, Pune is partly based on an incorrect understanding that the petitioners before the Supreme Court were only processors of textile fabrics and the decision of the Court is therefore limited to cases of processing of textile fabrics and similar processes. We have dealt with this aspect in paragraphs 4 5. It is evident that the decisions discussed by us were either not cited before the Bench, or were not considered by it. Advocate for the appellant also drawn our attention to the later decision of South Regional Bench of this Tribunal in Rajashree Foods Pvt. Ltd. v. CCE, Bangalore which was passed on 4-11-1996. This decision has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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