RAPHAEL PHARMACEUTICALS Vs. SUPERINTENDENT OF DISTILLERIES

JUDGEMENT

(1.) M/s. Raphael Pharmaceuticals (P) Ltd., is a manufacturer of a medicinal preparation called "Hempher". The petitioners are liceneees with the State Excise Department since April 1984 under loan licence granted by Food & Drugs Authority The said product belongs to M/s. Cachet Pharmaceuticals (P) Ltd., and is sold to M/s. Alkem Labs, Bombay only at Rs. 6.75 per bottle of 200 ml. The Excise Duty per bottle calculated at the above rate is Rs. 1.125. The petitioners have been paying excise duty on the aforesaid basis till they received a notice dated 18-6-1987 from the Superintendent of Distilleries Hyderabad. The demand notice dt. 18-6-1987 is reproduced hereunder:

(2.) Thus, upto June, 1986 on a quantity of 13,81,405 bottles, a differential amount of Excise Duty of Rs. 22,03,468-50 becomes recoverable from the licensee.

(3.) Therefore, M/s. Raphael Pharmaceuticals (P) Ltd., are directed to remit an amount of Rs. 22,03,468-50 due towards differential excise duty on the product removed from the Bond during the period upto June, 1986 within a week from the date of receipt of this notice".