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Appearance: Shri B.L. Narsimhan, Advocate for the appellant Shri M.S. Negi, DR for the respondent Coram: Honble Shri Rakesh Kumar, Member (Technical) Honble Shri Ashok Jindal, Member (Judicial) Final Order No. 50727-50728/2015 Per: Ashok Jindal The appellants are in appeals against the impugned order demanding duty from M/s. RGR Pharmaceuticals ALS Derabassi and imposing penalty on both the appellants.

2. The facts of the case are that the appellant RGR is a job worker of the medicaments of M/s. Nicholas Pharmaceuticals (India) Ltd. (NPIL). RGR is manufacturing goods and clearing the goods and paying duty to their NPIL on the value arrived as per the formula in the case of Ujagar Prints Vs. Union of India reported in 1989 (39) ELT 493 Supreme Court, i.e., cost plus job charges. An investigation was conducted and it was found that on the basis of agreement between the parties, the licence holder is NPIL and on behalf of NPIL, RGR is manufacturing the goods only for NPIL of these products. On the packets of the product, it is also mentioned that the goods manufacture by NPIL Derabassi address of RGR. In these circumstances, it was concluded that the real manufacturer is NPIL. Consequently the duty is payable by the appellant, RGR, at the value on which NPIL sold the goods in market. In these set of facts, 2 show cause notices were issued to the appellants demanding duty on the ground of under valuation of goods, also proposed penalty on the appellants. The show cause notices were adjudicated, demands were confirmed against the RGR at the selling price of NPIL along with interest and penalty on both the appellants were imposed.