UNION OF INDIA Vs. BARODA PHARMACEUTICALS LIMITED

JUDGEMENT

(1.) These appeals, by the Revenue, by special leave, are directed against the order of a Division Bench of the High Court of Gujarat in Special Civil Applications Nos. 3142 and 2768 of 1990.

(2.) Heard Mr Jaideep Gupta, learned Senior Counsel for the Revenue and Mr Yashank Adhyaru, learned Senior Counsel for the assessee.

(3.) The respondent is an SSI unit and manufactures patent and proprietary medicines. It also manufactures medicines of loan licensees, M/s Contrast Remedies and M/s Celestial Pharma Private Limited. The respondent was enjoying exemption under Notification No. 175 of 1986, as amended by Notification No. 223 of 1987 dated 22-9-1987. On 10-3-1987, the Superintendent of Central Excise, Range VI, Baroda, issued notice to the respondent stating that as the loan licensees were not entitled to exemption under the said notification, why the differential duty between the concessional rate of duty and the tariff rate of duty payable in respect of the goods of M/s Contrast Remedies should not be recovered from it The Assistant Collector, the adjudicating authority, by his order dated 19-7-1989 confirmed the demand. The respondent challenged the said order in the aforementioned applications before the High Court.