ARISTO PHARMACEUTICALS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE issue raised in both these appeals is the same, the effect of amendment in Section 4 (Valuation) of Central Excise Act, 1944 in the valuation of medicines which are subject to Maximum Retail Price, whether fixed under the Drug (Control) Law or by manufacturers. The appeals were heard on 18 -2 -2003 and 27 -2 -2003 and are disposed of under this common order.

(2.) THE controversy is around the following provision which came into force with effect from 28 -9 -1996 :

(3.) THE appellants first remove the medicines in question from the factories of production to their sales depots and sell them from these depots. Both sides are agreed that, in view of the amendment, sale prices from the depots should be the basis for assessment of the medicines to central excise duty on ad valorem basis; but disagree as to which of the depot prices is to be adopted. The appellant manufacturers contend that medicine prices are fixed "Batch Wise" (Batch of Production) and therefore, the depot price of the relevant batch should be the basis, while Revenue contends that Batch is of no relevance, as the same medicine continues to be manufactured from Batch to Batch. According to Revenue depot price of the medicine under assessment should be adopted without any regard to the price variations for the same medicine, based on the Batch of production.