9911796707
TMI Blog1991 (3) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... to an arrangement for manufacturing of certain drugs at the factory premises of petitioner No. 1. It appears that petitioner No. 2 requested the officers of excise department to recognise it as loan licensee manufacturer in respect of certain drugs got manufactured by it at the factory premises of petitioner No. 1. The Superintendent of Central Excise, Assessment Range-II, Division III, Ahmedabad wrote a letter dated May 2,1980 and informed that the loan licensee cannot be treated as manufacturer and the actual manufacturer should be treated as the manufacturer in respect of the goods manufactured by him whether on his own account or on behalf of the loan licensee. Therefore all clearances by him including those on behalf of loan licensee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. It is also prayed that the respondents be restrained from levying and collecting duty of excise in respect of the goods manufactured and cleared from the factory of petitioner No. 2 for and on behalf of petitioner No. 1 as loan licencee in respect of the first clearance made upto an aggregate value not exceeding Rs. 5 lakhs. 3. The question as to whether a loan licencee manufacturer can be a manufacturer as defined under the provisions of the Central Excises Salt Act, 1944 came up for consideration before this Court in the case of M/s. Indica Lab. v. Union of India reported in 30 (2) G.L.R. page 1120. Therein it is held that the loan licencees governed by the Drugs and Cosmetics Act, 1940 and the Drugs and Cosmetics Rules, 1945 can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an aggregate value not exceeding Rs. 5 lakhs. One of the conditions of Notification No. 80/80, dated June 19, 1980 reads as follows :- "Where a factory producing the specified goods is run at different times during a financial year by different manufacturers the aggregate value of clearances of the specified goods from such factory in any such year shall not exceed rupees five lakhs and rupees ten lakhs respectively in terms of clauses (a) and (b) of paragraph I." There is nothing on record to show as to what is the aggregate value of the clearances of the specified goods from the factory of petitioner No. 1 in the year in question. Therefore it cannot be assumed that such clearances have not exceeded Rs. 5 lakhs or Rs. 10 lakhs as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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