[THIRD MEMBER ON REFERENCE : DR. S.N. BUSI, MEMBER (T)] VAX INSTITUTE LABORATORY LTD. Vs. COLLECTOR OF C. EX., CALCUTTA-I

JUDGEMENT

(1.) BOTH the appeals arise out of the same impugned order and as such are being disposed of by this common order.

(2.) DEMAND of Rs. 15,31,260.52 (basic) and Rs. 73,939.77 (special) has been confirmed against the first appellant M/s. Vax Institute Laboratory Ltd. under proviso to Section 11A(1) of the CESA, 1944 read Rule 9(2) of the Central Excise Rules. Penalty of Rs. 1 lakh has also been imposed under Rule 173Q(1) on the said appellant. Penalty of Rs. 1 lakh has been imposed on the second appellant M/s. Albert David Ltd. under Rule 209A.

(3.) M /s. Vax Institute Laboratory Ltd. are engaged in the manufacture of pharmaceutical products. One of the medicaments manufactured by the appellants is Anaflam Tablet which is composed of Ibuprofen B.P. and Paracetamol I.P. The appellants entered into a contract with the second appellant M/s. Albert David Ltd. (hereinafter referred to as M/s. ADL) for manufacture of the said tablets out of the raw materials and packing materials supplied by M/s. ADL. As per the terms of the contract, the entire quantity of the finished product was to be supplied by Vax Institute Laboratory Ltd. to M/s. ADL and M/s. Vax Institute Laboratory was to claim job charges only. The appellant was clearing the said medicines by claiming the benefit of small scale exemption Notification No. 175/86 in terms of the approved classification list.