STATE OF MAHARASHTRA Vs. GRIFFON LABORATORIES PVT LTD

JUDGEMENT

(1.) THE appeal is directed against the judgment and order of the learned single judge making the writ petition filed by the respondents to the appeal absolute. The learned judge remitted the case to the Commissioner of Prohibition and Excise for decision in accordance with the law pointed out in his judgment. The learned judge remarked that the stand taken by the appellants disclosed an unawareness of the provisions of Section 4 of the Central Excises and Salt Act, 1944.

(2.) THE respondents manufacture medicinal and pharmaceutical preparations. Two of its preparations contain alcohol. These two preparations are, therefore, assessable to excise duty under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, which is administered by the State Government. The basis for calculation of excise duty thereunder is the basis provided by Section 4 of the Central Act.

(3.) IT is an admitted position that all the preparations of the respondents are sold through a company called Franco Indian Pharmaceuticals Pvt. Ltd. , which has been treated as a related person within the meaning of Section 4 (c) of the Central Act. It is also an admitted position that the price at which Franco Indian sells the preparations to wholesalers is their assessable value for the purposes of excise duty. The wholesalers get from Franco Indian an 8% trade discount; this is taken into account in the computation of the assessable value of the respondents' preparations as aforesaid. Approximately 4% of the respondents' preparations are distributed free of charge as samples to medical practitioners.