ASSOCIATED LABORATORIES PVT. Vs. CCE

JUDGEMENT

(1.) M /s. Associated Laboratories Pvt. Ltd. have filed the appeal against the order -in -original No. 25/94 dated 21.2.1994 passed by the Collector, Central Excise, Bombay -1.

(2.) BRIEFLY stated the facts are that the appellants manufacture patent or proprietory medicine. They were claiming the benefit of notification No. 161/66 dated 8.10.1966 and notification No. 245/83 dated 13.9.1983 which provided a specified discount on Maximum Retail Price (MRP). A show cause notice dated 22.2.1984 was issued to them demanding central excise duty amounting to Rs. 1,34,121.57 paise for the period from 21.6.1981 to 31.1.1984 on the ground that the benefit of the said notifications was not available to them as the conditions laid down in the notifications were not fulfilled by them. The Collector, in the impugned order, confirmed the demand amounting to Rs. 89,265.83P holding that the appellants had not filed the price -list required under para 19 of the Drug (Price Control) Order (DPCO) in the prescribed form; that the manufacturer could not fulfil the condition specified in the notification; that they were not filing the form and still taking advantage of the notification which amounted to suppression of facts and misrepresentation and consequently the demand for the extended period was justifiable. The Collector, however, allowed them a normal discount which the appellants had offered to their customers.

(3.) WHEN the matter was called, no one appeared on behalf of the appellants in spite of notice. We, therefore, heard Shri Satnam Singh, learned SDR, and perused the records. The appellants have submitted, in their appeal memorandum that as per the notification No. 5(13)78 Drug II dated 2.4.1979 issued under the DPC Order, 1979, the manufacturers whose clearance was less than Rs. 50 lakhs per annum were not required to file price list under para 19 of the DPC order; that their turnover for the years was less than Rs. 25 lakhs per year. They have, further, submitted that they had furnished a price list in form 5 to Drug Controler, Maharashtra as per para 19 of DPCO 1979 under their letter dated 3.10.1983; that excise notification did not specify that filing of price list to DPCO was mandatory as it merely provided that a deduction of 15% on MRP would be available as per para 19 of DPCO 1979 if the manufacturer opted for the notification; that excise notification did not provide that DPCO notification dated 2.4.1979 was inapplicable. They finally submitted that there was no allegation in the show cause notice about suppression of facts; that they had claimed the benefit of notification No. 161/66 and 245/83 in their classification list and Gate Passes and RT 12 showed Maximum Retail Price minus 15% and RT -12 and were finalised by Revenue. Reliance was placed on the decision in the case of B.D. Steel Castings Ltd. v. CCE, Bombay and CCE v. Indian Card Board Industries Ltd. .