COMMISSIONER OF CENTRAL EXCISE Vs. MERIDIAN PHARMACEUTICALS

JUDGEMENT

(1.) THIS is an appeal filed by Revenue.

(2.) WHILE finalizing provisional assessment of "P or P medicines" manufactured and cleared by M/s. Meridian Pharmaceuticals during the period 1.4.95 to 31.3.98, the jurisdictional Assistant Commissioner demanded differential duty of Rs. 1,86,472/ - disallowing claims for abatement towards interest on receivables, breakages and value of medicines sold alter the expiry date. In the impugned order, Commissioner (Appeals) allowed the claims for abatements towards interest on receivables and breakages. The Commissioner (Appeals) also allowed adjustment of excess duty paid to the extent of Rs. 79,870/ - during provisional assessment towards the demand. The assessee had not contested denial of abatement on account of medicines sold after the expiry date.

(3.) AS regards 'breakages' the Revenue has relied on the ratio of the apex Court's judgment in the M.R.F. case to the effect that when buyers are compensated for defective tyres by the assessee, the same was not abatable.