CIPLA LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) HEARD both sides. The appellants are manufacturers of medicament. They cleared one such medicament viz Ciplox 750 mg tablets on payment of duty. Consequent to price reduction, they were required to show reduced MRP on such tablets, lying at various depots/warehouses and stockists. They decided to bring back such tablets and undertook the process of de -foiling and re foiling the same and printing new MRP required under the Rules. They took Modvat credit of the duty paid on Ciplox 750 mg tablets brought back and after de -foiling, they removed the goods at a lower MRP by paying duty once again, by considering the process of de -foiling and re -foiling as amounting to manufacture in terms of Note 5 to Chapter 30, where medicaments are classified.

(2.) THEY filed regular declarations in terms of Rule 57G by declaring Ciplox 750 mg as an input and re -foiling Ciplox has final product.

(3.) SIMILARLY they also brought back Ciplo 250 mg and Ciplo 500 mg tables from warehouses/depots at their factory at Mumbai Central, where they undertook the process of de -foiling and re -foiling and indicated the revised MRP and filed necessary declaration under Rule57G declaring de -foiled packages and the Ciplox tablets in bulk as raw material. They removed the tablets de -foiled after claiming Modvat credit and while clearing the tablets, and bulk discharged duty free, the said credit availed at the de -foiling centre. At the re -foiling factory premises they took credit of such duty paid on the tablets brought in bulk from de -foiling centre and used the Modvat credit on discharge of duty when they removed the re -foiled tablets.