2005 (10) TMI 136

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..... vailing the benefit of Notification No. 175/86. The issue involved in the present appeal is as to whether the appellant's entitlement to said SSI notification is to be decided after taking into account the clearances effected by M/s. Varma Pharmacy Pvt. Ltd., in respect of the goods manufactured on behalf of the appellants. 2. The appellants have contended before the authorities below that prior to disputed period, they were not manufacturing any goods in their factory and were not holding any SSI certificate. The clearances effected on their behalf by M/s. Varma Pharmacy Pvt. Ltd., were denied exemption and the same were cleared on full payment of duty. Subsequently, they obtained the SSI certificate and started manufacturing on their ow .....

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..... . Ltd., is located in Pune. Though, M/s. Varma Pharmacy Pvt. Ltd., are manufacturing goods for the appellants as per the agreement entered into between the two, they are doing so independently and have to be treated as independent manufacturer of the goods. The appellants does not have any control or supervision over the activities earned out at the factory of M/s. Varma Pharmacy Pvt. Ltd., and as such, cannot be treated as loan licensees. The Gujarat High Court's decision in these circumstances will not apply. 6. On the other hand, we find that the disputed issue has been considered by the Tribunal in a number of cases and it has been held that even the fact of supply of raw materials to the job worker for manufacture of medicines in acc .....

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..... ement to the SSI exemption Notification. 7. To the similar effect, we find another decision of the Tribunal in the case of Collector of Central Excise, Madras v. Lupin Laboratories (P) Ltd., reported in 2003 (162) E.L.T. 803 (Tri.-Del.), wherein it was held that getting drugs manufactured by SSI unit by supplying them raw materials and exercising quality control but not engaging them on shift basis and without their control or supervision on day-to-day basis does not amount to manufacture of goods as loan licensee. As such, it was held that the unit actually manufacturing the goods was the manufacturer. 8. By applying the ratio of the above decision to the facts of the instant case, we are of the view that the value of clearances from t .....

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