SANGKO PHARMACEUTICALS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants are a registered SSI Unit interalia engaged in the manufacture of medicaments falling under chapter 30 of Central Excise Tariff Act at the initial stage. They contracted out to engage the factory to a loan licence manufacturer since they did not have sufficient infrastructure for manufacture and marketing of their own products, in the year 1988 M/s Cross Land Research Lab (hereinafter referred to as CRLL for brevity) was one of the loan licensee and non SSI unit who utilized the factory of the appellant to manufacture with their own raw material, packing material and supervision and control products I) Estrogesic and ii) Statuin -V approved by the food and Drug administration by allotting license no 2966A. Similarly in the year 1989 CRLL got other products also registered with Food and Drug administrator these products were I) Extrogesic A.F. ii) Mobinak for manufacture as loan licensee.

(2.) a) The production and clearance of the products under the provision of Rule 70(A) of Drugs and Cosmetics Act 1940 was effected as loan licensee; Classification list were filed by CRLL under Rule 173B of Central Excise Rules 1944 from time to time and got approved. The claim of SSI Exemption under notification 175/86 dtd 1/3/86 along with supporting documents viz certificates issued by the Directorate SSI for factories at I) Thanjawar, ii) Jejuri iii) Silvasa on provisional basis duly supported by the certificate issued by the concerned Superintendent were claimed, such claim in classification list were approved by the A.C.C.Ex Mulund and bearing Nos. 3/89/90, 146/88/89 and 4/89/90. Mobinak being a single ingredients formulation was exempted in excess of 10% duty vide notification No. 29/88 prior to issue of show cause cum demand notice dtd 4/5/94.

(3.) HEARD both sides and considered the material and it is found