SMITHKLINE BEECHAM CONSUMER Vs. C.C.E.

JUDGEMENT

(1.) The appellants are manufacturers of 'Horlicks' which is liable to duty under Chapter Heading 1901 of the Central Excise Tariff. From the Nabha factory where the manufacture takes place, goods are cleared in bulk packing to their packing stations located at various places. At the packing stations the goods are re -packed in to consumer packs and are cleared. Central Excise duty is attracted both when goods are cleared in bulk packs from the Nabha factory as well as when they are cleared after re -packing from the packing stations. The duty paid at the Nabha factory for the bulk clearances is availed as Modvat/Cenvat credit for payment of duty on the re -packed goods at the packing stations.

(2.) All the present appeals relate to differential duty demands in respect of goods cleared in bulk from the Nabha factory during the years 1994 to 2000. The facts of the case are that since the clearance from Nabha were to self for captive consumption, the assessable values of the goods were required to be determined based on their cost of production from time to time. During the relevant period, bulk clearances from Nabha factory were assessed to duty on provisional basis, pending finalization of the accounts for the relevant years. There was much delay in the finalisation of those assessments as would be seen from the chart below : - <FRM>JUDGEMENT_197_LAWS(CE)12_20021.htm</FRM>

(3.) These appeals also include a duty demand of Rs. 23.56 lakhs in respect of Boost intermediates sold to Jagajit Industries. This demand is not contested by the appellants.