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TMI Blog1981 (10) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... ranchise Agreement with the Parle (Exports) Pvt. Ltd. on July 25, 1977 and on March 7, 1978. Under the said Franchise Agreement the petitioners from time to time buy the essence supplied by the Parle (Exports) Pvt. Ltd. and utilise the same in the manufacture of soft drinks. The petitioners have installed an elaborate bottling plant in the factory at investment of about Rs. 95 lacs, all of which have been contributed from the assets of the petitioners. The petitioners purchase in addition to the essence numerous articles such as bottles, crown corks, sugar citric acid etc., from the market. Parle (Exports) Pvt. Ltd. have no control over the mode or manner of manufacture of soft drink save and except to ensure the quality of product. Parle ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioners filed their price list claiming exemption on the first 37 lac bottles cleared by them during the financial year 1976-77. The price list was filed on July 13, 1977. The price list was not approved by the Superintendent of Central Excise and the petitioners paid full duty in respect of first 37 lac bottles and thereafter filed a claim for refund of Rs. 4, 79, 915. 36 on September 23, 1977. The said refund application is still pending before the Superintendent of Central Excise. 4. The petitioners submitted a fresh price list on March 3, 1978 claiming the benefit of the Notification. The price list was again not approved by the Superintendent of Central Excise, but the petitioners were permitted to clear the goods under Rule 9(2) aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Exports) Pvt. Ltd. were the manufacturers is totally incorrect and the perusal of the Franchise Agreement would leave no manner of doubt that the petitioners were the manufacturers and not the Parle Exports. The learned Counsel pointed out that the view taken by the Excise Authorities is based upon the advice given by the Law Ministry on January 20, 1978 and the decision based upon that advice is totally incorrect. Shri Setalwad pointed out that the Central Government in exercise of the revisional jurisdiction has found in the case of Surat Bottling Co. that the Franchise Agreement does not lead to the conclusion that Parle (Exports) are the manufacturers and not the bottling company. The learned Counsel also relied upon the decision of a D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... except to determine the quality of the manufactured product. The condition to keep control over the manufactured products is only with a view to guarantee the quality, specification and such other standards of the products to be manufactured by several bottling companies. It is obvious from this agreement that the petitioners have merely obtained raw material used in the manufacture of excisable goods and have produced the soft drink by manufacturing in their own plant and in these circumstances it is not possible to hold that the petitioners are not the manufacturers, but the Parle (Exports) Pvt. Ltd. The reliance by Shri Setalwad on the decision taken by the Government of India in exercise of the revisional jurisdiction under Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rged that several conditions and restrictions provided by the Franchise agreement would lead to the conclusion that the petitioners had no control over the mode or manner of manufacture of soft drinks and it is the Parle (Exports) Pvt. Ltd. who were in fact the manufacturers, having absolute control over the manner and mode of manufacture. It is difficult to accept the submission. The restrictions are put merely with a view to safeguard the quality of the soft drink to be sold under the trade name of Parle Exports. The petitioners have not received any financial assistance from the Parle (Exports) Pvt. Ltd. nor Parle (Exports) Pvt. Ltd. have got any control over the manner and working of the plant which exclusively belongs to the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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