Mumbai Court November 2006 Judgments

Alkem Laboratories Ltd. Vs. Commissioner of C. Ex.

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

1. The applicant is engaged in the manufacture of P or P medicine. They were also clearing some medicine manufactured from the premises of M/s.Alkon Industries, which, according to Revenue, was the hired premises and M/s. Alkon Industries had lent the services of their expert staff, equipment and premises for manufacture of the medicine under the supervision and control of the applicant. Up to May 2003, the medicine were cleared by M/s. Alkon Industries, which the applicant claims to be its job worker and independent manufacturer in their own rights and duty was being paid at the price at which the medicines were sold by the applicant in the wholesale market. However, with effect from June 2003, the basis of valuation was changed to 115% of the cost of manufacture. This change in valuation was not accepted and show cause notices were issued for recovering differential duties on the ground that the goods were required to be assessed on the basis of prevalent transaction value. Show cau...