DOLPHIN LABORATORIES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) IN these two appeals, filed by M/s. Dolphin Laboratories Ltd., the issue involved is whether they are the manufactures of Gesdyp and Dolamide or M/s. Ranbaxy Laboratories Ltd.

(2.) SHRI B.L. Narasimhan, learned Advocate, mentioned that the Appellants manufacture Patent or Proprietary Medicines by using their own raw materials; that they also act as job worker for M/s. Ranbaxy Laboratories Ltd. (M/s. Ranbaxy in short) under an Agreement; that M/s. Ranbaxy supply the necessary raw materials for the manufacture of medicines; that they clear these medicines on payment of Central Excise duty on the principles of valuation laid down by the Supreme Court in Ujagar Prints v. UOI - 1989 (39) E.L.T. 493 (S.C.) and 1988 (38) E.L.T. 535 (S.C); that the Department has confirmed the demand of duty of Excise and imposed penalty on the ground that M/s. Ranbaxy are loan licensees and thus are the manufacturers of the impugned goods as they get the impugned goods manufactured under their own control or supervision and out of their own raw materials and accordingly the duty is payable on the basis of price at which the goods are sold by M/s. Ranbaxy from their depot in terms of Rule 7 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000.

(3.) WE also heard Shri R.C. Shankhla, learned SDR who supported the findings as contained in the impugned Order.