JAGSONPAL PHARMACEUTICALS LTD. Vs. COMMR. OF C. EX.

JUDGEMENT

(1.) The referred Bench after noticing conflicting views in appellants' own case that is Jagsonpal Pharmaceuticals Ltd., reported in 1997 (92) E.L.T. 414 (Tribunal) and the second decision reported in 1998 (99) E.L.T. 426 (Tribunal), whereby the benefit of Modvat credit in respect of disposable syringes and needles packed with the medicines, were denied and in the case of Standard Surfactants Ltd. v. Commissioner of Central Excise, Kanpur reported in 2000 (115) E.L.T. 763 (Tribunal), whereby the credit was allowed in respect of detergent cake cleared along with detergent powder.

(2.) In this case the appellants are manufacturing pharmaceutical products. During the period October 1994 to December 1994, the appellants availed the credit in respect of disposable syringes and needles as input for the manufacture of their final product that is Metadec Injection. In the earlier cases, the Tribunal after noticing the fact that appellants claimed the credit as packing material disallowed the credit on the ground that disposable syringes and needles are not packing material. The Tribunal in the case of Standard Surfactants Ltd. v. Commissioner of Central Excise, Kanpur (supra) allowed the credit in respect of detergent soap bar, which were supplied along with the detergent powder on the ground, that the value of soap bar is included in the assessable value of the final product Ariel Super Soaker and bar. The Tribunal held that there is no two definitions in the Central Excise law for the purpose of levy of duty as manufactured and for granting input credit.

(3.) The contention of the appellants is that they filed a declaration claiming the credit in respect of disposable syringes and needles, which were cleared in a 'blister pack' with the medicine to be used in or in relation to the final product. The value of disposable syringes and needles is included in the assessable value of the medicines. The appellants relied upon the decision of the Standard Surfactants Ltd. v. Commissioner of Central Excise, Kanpur (supra) to submit that where the process undertaken by the appellants' amounts to manufacture and the value of goods is included in the assessable value of final product, the input credit cannot be denied in respect of those goods.