9911796707
TMI Blog2007 (4) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii)Amoxycillin Trihydrate IP/BP and (iii) Cloxacillin Sodium IPBP. These drugs are subject to Central Excise duty. The inputs going into their production are also eligible for credit (Modvat) of Central Excise duty paid on them. 3. During the period April, 1993 to July, 1997, the appellants received inputs like Pencillin-G, Menthaoil, HCL, Ammonia Gas, Methalene Chloride and Toluene and took credit of duty paid on them. These inputs are to be first converted into an intermediate product, 6 APA. M/s. Cepham Organics does not undertake this conversion of the inputs into 6 APA for some technical reasons like the danger of contamination of other products manufactured in the factory. The inputs are therefore, transferred to the other appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Notification No. 214/86. 6. While the disputes are for the period 1993 to 1997, show cause notices were issued only in March, 1998. These notices invoked the extended period of five years permitted under the proviso to Section 11A of Central Excise Act, 1944. 7. The submission of the learned Senior Counsel for the appellants is that these are not cases involving fraud, suppression of facts, etc. mentioned as the special circumstances for issuing delayed show cause notices. According to the learned Counsel, the demand has to be quashed on the ground of limitation alone. The contention of the Counsel is that no notice was warranted as there is no duty evasion and all that was involved was variation in the procedure and documentatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, demands are fully justified. According to him, suppression of facts is clearly involved in as much as the appellants had not disclosed to the revenue authorities that the modvatted inputs were being sent out to another factory for conversion to 6 APA. 11. We have perused the record and carefully weighed the contentions raised by both sides. The record shows that dispatch of inputs by appellant M/s. Cepham Organics to M/s. Cepham Laboratories, conversion of these inputs by the latter to 6 APA and return of 6 APA to the former were being fully reflected in the books of accounts of both parties. Thus, there was nothing clandestine or unaccounted about the transactions. Relevant Rules specifically permitted such movements. Further, M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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