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TMI Blog2015 (5) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... Apex Court in the case of Ujagar Prints [1989 (1) TMI 124 - SUPREME COURT OF INDIA] considering and also as per the CBEC Circular no. 619/10/2002 Central Excise dated 19/2/2002, duty demand against RGR on the selling price of NPIL is not sustainable. - Decided in favour of assessee. - Appeal No. E/76 and E/409/2006-EX [DB] - Final Order No. 50727-50728/2015 - Dated:- 18-2-2015 - Hon ble Shri Rakesh Kumar, Member (Technical) And Honble Shri Ashok Jindal, Member (Judicial),JJ. For the Appellant : Shri B. L. Narsimhan, Advocate For the Respondent : Shri M. S. Negi, DR ORDER Per: Ashok Jindal The appellants are in appeals against the impugned order demanding duty from M/s. RGR Pharmaceuticals ALS Derabassi and imposin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is M/s. NPIL. He further submits that when the manufacturer is NPIL, therefore, duty cannot be demanded from RGR. In these circumstances, he prayed impugned order be set aside. He further submits that, in fact, RGR are the manufacturer/job worker and undertaken the activity on job basis independently for NPIL. As per the agreement appellant, RGR, is the manufacturer and NPIL is the principle thereof. In these circumstances, duty is payable by RGR. 5. He also submits that RGR is paying duty on the value arrived at cost plus job charges as per the formula determined by the Apex Court in the case of Ujagar Prints Vs. Union of India. Therefore, duty cannot be demanded from RGR at the selling price of NPIL. In these circumstances, impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een hired shiftwise or otherwise by the raw material supplier and the goods are manufactured under the control and supervision of the raw material supplier, the raw material supplier cannot be considered as a manufacturer. In the present case no evidence has been brought out on record to show that the premises of the job workers were so hired nor there is any evidence to show that the goods were manufactured under the complete control and supervision of the raw material supplier. Merely giving manufacturing instructions, manufacturing programme and specifications of the medicines does not mean that the goods were manufactured under the control and supervision of M/s. Glenmark Pharmaceutivals unless there is evidence to show that the staff w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicines does not make M/s. Ranbaxy as a manufacturer. On the other hand the agreement makes it clear that for the failure of batches, the appellants would be liable to pay the cost of all inputs, raw materials and packing material. This clearly goes to show that eh appellants are manufacturing the goods independently and not under the control and supervision of M/s. Ranbaxy. In similar facts in the case of Mayo India., Ltd., where the appellants were getting manufacture the medicines as loan licensee out of raw materials supplied by them as per their specifications requirement and bearing their trade mark and brand name, the Tribunal has held that the terms and conditions of the agreement reveal that the transactions between the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture on job work basis valuation would be governed by Rule 11 of the new Valuation Rules of 2000 read with Rule 6 with the above two decisions of the Apex Court.. 10. On going through the decisions mentioned here in above we hold that in this case, manufacturer is RGR and NPIL is not the real manufacturer. RGR is discharging their duty liability on cost plus job work charges as per the formula prescribed by the Apex Court in the case of Ujagar Prints considering and also as per the CBEC Circular no. 619/10/2002 Central Excise dated 19/2/2002, duty demand against RGR on the selling price of NPIL is not sustainable. 11. In view of these findings, we set aside the impugned order and also hold that as appellant RGR has paid duty corre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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