IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.1939 OF 2004 GlaxoSmithKline Pha ma!e"ti!

al# Limite$ %Fo me l& 'no(n a# SmithKline )ee!ham Pha ma!e"ti!al# %In$ia* Limite$* Ve #"# Union o- In$ia . O #/ WITH CIVIL APPEAL NO.1940 OF 2004 WITH CIVIL APPEAL NO.1941 OF 2004 WITH CIVIL APPEAL NO.1942 OF 2004 AND

REPORTABLE

+ A,,ellant + Re#,on$ent#

CIVIL APPEAL NOS._10901-10902_OF 2013 (ARISING OUT OF SLP (CIVIL) NOS.2 241-2 242 OF 2010) !UDG"ENT R.". LODHA#!/ Lea0e 1 ante$ in SLP%C* No#/23245623242 o- 2757/ 2/ Thi# i# a 1 o", o- #ix a,,eal#8 9& #,e!ial lea0e8 -o" a i#in1

- om the :"$1ment o- the Ka nata'a Hi1h Co" t an$ t(o - om the Delhi Hi1h Co" t/ ;/ The t(o Hi1h Co" t#8 Ka nata'a an$ Delhi8 ha0e ta'en

$iamet i!al o,,o#ite 0ie( on the <"e#tion (hethe the , i!e# -ixe$ "n$e the D "1# %P i!e# Cont ol* O $e %-o #ho t8 =DPCO>* in e#,e!t o1
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$ "1#?-o m"lation# (o"l$ 9e o,e ati0e in e#,e!t o- all #ale# #"9#e<"ent to 5@ $a&# - om the $ate o- the noti-i!ation 9& the Go0e nment in the o--i!ial 1aAette? e!ei,t o- the , i!e -ixation o $e 9& the man"-a!t" e / 4/ The D "1# %P i!e# Cont ol* O $e 85BB@ %-o #ho t8

=DPCO85BB@>* (a# "n$e !on#i$e ation 9e-o e the Ka nata'a Hi1h Co" t (he ea# the D "1# %P i!e# Cont ol* O $e 85BC3 %-o #ho t8 =DPCO85BC3>* -ell -o !on#i$e ation 9e-o e the Delhi Hi1h Co" t/ Altho"1h8 the #e<"en!e o- the ele0ant ,a a1 a,h# in the t(o DPCO# $i--e 9"t the ele0ant , o0i#ion# a e almo#t i$enti!al/ The 0ie( o- the Ka nata'a Hi1h Co" t ha# not 9een a!!e,te$ ex, e##l& 9& the Delhi Hi1h Co" t/ Sin!e the !ommon a 1"ment# ha0e 9een a$0an!e$ in thi# 1 o", o- matte # an$ the <"e#tion ola( i# i$enti!al8 all the#e #ix a,,eal# (e e hea $ to1ethe an$ a e $i#,o#e$ o- 9& the !ommon o $e / @/ The -a!t# in !i0il a,,eal# - om Ka nata'a Hi1h Co" t a e the#eD The a,,ellant8 in the &ea 5BBC8 (a# man"-a!t" e o- F" oxene Ta9let# an$ (a# al#o the #ole $i#t i9"to -o De,en$al6M Ta9let# an$ De,en$al S"#,en#ion man"-a!t" e$ 9& Kan,ha La9#8 )an1alo e/

De,en$al6M an$ De,en$al S"#,en#ion an$ F" oxene a e -o m"lation# oF" oAoli$ine an$ Met oni$aAole/ On 7B/7;/5BBC8 a noti-i!ation (a# i##"e$ 9& the National Pha ma!e"ti!al P i!in1 A"tho it& %NPCA* "n$e the

DPCO85BB@8 (he e9& the !eilin1 , i!e in e1a $ to #e0e al -o m"lation# !on#i#tin1 o- F" oAoli$ine an$?o Met oni$aAole (a# -ixe$ ex!l"#i0e o-

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ex!i#e $"t& an$ lo!al taxe#/ The noti-i!ation (a# 1aAette$ on 7B/7;/5BBC it#el-/ E/ On 57/7;/5BBC8 NPCA i##"e$ an ex,lanato & noti!e !la i-&in1

that the noti-i!ation e$"!e# the exi#tin1 , i!e# an$ the man"-a!t" e # m"#t ma'e e--e!ti0e the , i!e# #o -ixe$? e0i#e$8 (ithin 5@ $a&# %- om the $ate othe noti-i!ation in the o--i!ial 1aAette o e!ei,t o- the o $e o- the NPCA* a# e<"i e$ "n$e ,a a 54%5* o- the DPCO85BB@ an$ al#o i##"e ne!e##a & e0i#e$ , i!e li#t# a# e<"i e$ "n$e ,a a 54%;* o- that O $e / 3/ On 54/73/5BBC8 the In#,e!to o- D "1#8 Va ana#i i##"e$ a

lette a$$ e##e$ to the a,,ellant6Com,an& that it ha# not 1i0en the e--e!t to the noti-i!ation $ate$ 7B/7;/5BBC/ C/ On 22/73/5BBC8 the a,,ellant6Com,an& e#,on$e$ to the lette

e!ei0e$ - om the In#,e!to o- D "1# an$ 9 o"1ht to hi# noti!e that the noti-i!ation $ate$ 7B/7;/5BBC ha# 9een 1i0en e--e!t to - om the -i #t 9at!h man"-a!t" e$ on the ex,i & o- 5@ $a&# - om the $ate o- the noti-i!ation (hi!h i# ,e mi##i9le "n$e ,a a 54 o- the DPCO85BB@/ B/ On ;7/73/5BBC8 In#,e!to o- D "1# #ent anothe lette to the

a,,ellant6Com,an& #tatin1 the ein that "n$e ,a a1 a,h 5E o- DPCO85BB@8 all #ale# o- the #"9:e!t -o m"lation# (o"l$ ha0e to 9e ma$e at the ne( !eilin1 , i!e -ixe$ on 7B/7;/5BBC i e#,e!ti0e o- the $ate o- man"-a!t" e othe #"9:e!t -o m"lation#/ The ,lea o- the a,,ellant6Com,an& (a#8 a!!o $in1l&8 e:e!te$ 9& the In#,e!to o- D "1# an$ he , o,o#e$ to initiate the , o#e!"tion a1ain#t the a,,ellant6Com,an& "n$e the E##ential
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Commo$itie# A!t85B@@ %=EC A!t>*/ Thi# (a# eite ate$ 9& the In#,e!to oD "1# in hi# -" the !omm"ni!ation $ate$ 5E/55/5BBC/ 57/ The a,,ellant6Com,an& then !hallen1e$ the noti!e#?lette #

$ate$ 54/73/5BBC8 ;7/73/5BBC an$ 5E/55/5BBC 9& -ilin1 a ( it ,etition 9e-o e the Hi1h Co" t/ The ( it ,etition (a# !onte#te$ 9& the Cent al Go0e nment an$ it# -"n!tiona ie#/ 55/ The Ka nata'a Hi1h Co" t 9& it# :"$1ment $ate$ 52/55/2772 ea#onin1 i# e-le!te$ in

$i#mi##e$ the ( it ,etition/ The , in!i,al

,a a1 a,h B o- the :"$1ment (hi!h ea$# a# -ollo(#D

FB/ Ha0in1 e1a $ to the , o0i#ion# o- ,a a 54 o- DPC O $e 8 ,etitione (ho i# a man"-a!t" e o- F" oxene ta9let#8 o"1ht to !a & into e--e!t the e0i#e$ , i!e -ixe$ a# ,e Noti-i!ation $ate$ 7B/7;/5BBC (ithin 5@ $a&# - om the $ate o- the #ai$ Noti-i!ation o e!ei,t o- the O $e o- the Go0e nment/ The e i# no $i#,"te that the Noti-i!ation $ate$ 7B/7;/5BBC (a# ,"9li#he$ in the GaAette oIn$ia on the #ame $ate/ Ghile #"96,a a %2* o- ,a a 54 e<"i e# the etail , i!e o- the -o m"lation a# noti-ie$ 9& the Go0e nment 9ein1 $i#,la&e$ on the la9el o- the !ontaine o- the -o m"lation an$ the minim"m ,a!' o--e e$ -o etail #ale8 #"96,a a %;* the eo- e<"i e# the man"-a!t" e to i##"e a , i!e li#t an$ #",,lementa & , i!e li#t to the $eale # an$ othe ,e #on# #,e!i-ie$ the ein in$i!atin1 e-e en!e to , i!e -ixation? e0i#ion - om time to time/ Pa a 5E oDPC O $e , ohi9it# all ,e #on# in!l"$in1 man"-a!t" e #?$i#t i9"to #? etaile # - om #ellin1 an& -o m"lation at the , i!e ex!ee$in1 the , i!e #,e!i-ie$ in the !" ent , i!e li#t in$i!ate$ on the la9el o- the ,a!' (hi!he0e i# le##/ Th"#8 a !om9ine$ ea$in1 o- the#e , o0i#ion# ma'e it !lea that e0e & man"-a!t" e an$ $i#t i9"to i# $"t& 9o"n$ to i##"e a e0i#e$ , i!e li#t (ithin 5@ $a&# - om the $ate o- the noti-i!ation i##"e$ 9& the Go0e nment "n$e ,a a B o- the DPC O $e / It i# al#o !lea that man"-a!t" e #8 $i#t i9"to # an$ etaile # (ill 9e lia9le to #ell -o m"lation# - om the $ate o- #"!h e0i#e$ , i!e li#t %(hi!h i# e<"i e$ to ,"9li#h (ithin 5@ $a&# - om the $ate o- noti-i!ation* at the e0i#e$ , i!e# an$ not the , i!e# mentione$ on the la9el o- the !ontaine o ,a!'/ In 0ie( o- it8 the !ontention o- the Petitione that e0i#e$ , i!e# (ill not a,,l& to the exi#tin1 #to!'# 9"t onl& to ne( 9at!he# o- $ "1# an$ -o m"lation# to 9e man"-a!t" e$ a-te 5@ $a&# o- the noti-i!ation !annot 9e a!!e,te$/ The , o0i#ion# o- the 4
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DPC O $e a e !lea that , i!e# #ho"l$ 9e e0i#e$ (ithin 5@ $a&# e0en in e1a $ to the -o m"lation# (hi!h (e e man"-a!t" e$ , io to the $ate o- noti-i!ation o tho#e man"-a!t" e$ (ithin 5@ $a&# - om the $ate o- noti-i!ation/H

52/

It i# - om the a9o0e :"$1ment that -o" a,,eal# a i#e at the

in#tan!e o- the man"-a!t" e ?$i#t i9"to / 5;/ The t(o a,,eal# - om the :"$1ment o- the Delhi Hi1h Co" t a e

at the in#tan!e o- the Cent al Go0e nment/ The -a!t# in the#e t(o a,,eal# in 9 ie- a e the#eD Fo the ,e io$ 75/74/5B3B to 2@/7C/5BC38 D "1# %P i!e# Cont ol* O $e 85B3B %-o #ho t8 =DPCO85B3B>* (a# in o,e ation/ The 9"l' $ "1 Raniti$ine an$ it# -o m"lation (e e not #"9:e!t to , i!e !ont ol "n$e DPCO85B3B8 an$8 !on#e<"entl&8 the e (a# no , i!e -ixation at all in e#,e!t o- Iineta! ta9let#/ 54/ On 2E/7C/5BC38 DPCO85BC3 !ame into -o !e (he e9& the 9"l'

$ "1 Raniti$ine (a# in!l"$e$ an$8 a!!o $in1l&8 Iineta! ta9let# %it# -o m"lation#* (e e #"9:e!te$ to , i!e !ont ol/ 5@/ On 53/7;/5BCC8 the , i!e -ixation o $e (a# i##"e$ "n$e ,a a

B%5* o- the DPCO85BC3 -ixin1 the etail , i!e o- Iineta! ta9let#/ The , i!e -ixation o $e i# #ai$ to ha0e 9een e!ei0e$ 9& the man"-a!t" e %)iote!h Pha ma* on 25/7;/5BCC/ 5E/ The e#,on$ent i# $i#t i9"to o- the Iineta! ta9let# in the

#t en1th o- 5@7 m1 an$ ;77 m1 ,e ta9let man"-a!t" e$ 9& )iote!h Pha ma/ Iineta! i# a -o m"lation o- the 9"l' $ "1 Raniti$ine/ On 74/74/5BCC8 the )iote!h Pha ma #ent the #",,lementa & , i!e li#t e--e!ti0e
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- om 74/74/5BCC in -o m V/ It i# the !a#e o- the e#,on$ent that the , i!e -ixe$ 9& the , i!e -ixation o $e $ate$ 53/7;/5BCC i# a,,li!a9le (ith e--e!t - om 74/74/5BCC %on ex,i & o- 5@ $a&# - om 25/7;/5BCC8 i/e/8 the $ate oe!ei,t o- the , i!e -ixation o $e $ate$ 53/7;/5BCC*/ 53/ On 2;/7@/5BCC8 #eiA" e# (e e ma$e o- ;77 m1 Iineta! ta9let#

- om )at!h No/;574/ The e#,on$ent># !a#e i# that )at!h No/;574 i# , io to )at!h No/;55@ mentione$ a# the e--e!ti0e 9at!h n"m9e man"-a!t" e ># lette $ate$ 74/74/5BCC/ 5C/ The e#,on$ent6Com,an& !hallen1e$ the #eiA" e o- 1oo$# 9& in the

-ilin1 a ( it ,etition 9e-o e the Delhi Hi1h Co" t/ The ( it ,etition (a# !onte#te$ 9& the Cent al Go0e nment 9e-o e the Delhi Hi1h Co" t an$ the :"$1ment o- the Ka nata'a Hi1h Co" t (a# al#o !ite$/ Ho(e0e 8 Delhi Hi1h Co" t $i$ not a1 ee (ith the 0ie( a$o,te$ 9& the Ka nata'a Hi1h Co" t/ The Delhi Hi1h Co" t hea0il& elie$ ",on a !i !"la $ate$ 2C/74/5B3B i##"e$ 9& the Mini#t & o- Pet ole"m8 Chemi!al# an$ Fe tiliAe #8 De,a tment o- Chemi!al# an$ Fe tiliAe #8 Go0e nment o- In$ia/ The #ai$ !i !"la tho"1h (a# i##"e$ in the !ontext o- ,a a1 a,h 5B%2* o- DPCO85B3B 9"t the Delhi Hi1h Co" t (a# o- the 0ie( that the #ai$ !i !"la (a# i$enti!al to ,a a1 a,h 5E%;* o- DPCO85BC38 an$8 the e-o e8 the ,o#ition ex,laine$ in e#,e!t othe DPCO85B3B (o"l$ !ontin"e to hol$ the -iel$ in e#,e!t o- the 0e & #ame , o0i#ion# in DPCO85BC3/ The Delhi Hi1h Co" t8 a!!o $in1l&8 9& it# :"$1ment $ate$ 22/57/277B allo(e$ the ( it ,etition an$ <"a#he$ the

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#eiA" e memo (he e9& the 1oo$# (e e #eiAe$/ The Union o- In$ia i# a11 ie0e$ 9& the :"$1ment an$ the t(o a,,eal# a i#e the e- om/ 5B/ Ge ha0e hea $ M / S/ Gane#h8 lea ne$ #enio !o"n#el -o the

man"-a!t" e ?$i#t i9"to an$ M#/ In$i a Jai#in18 lea ne$ A$$itional Soli!ito Gene al -o the Union o- In$ia/ 27/ It i# a,, o, iate at thi# #ta1e to e, o$"!e the -e( ele0ant

,a a1 a,h# o- DPCO85BC3 an$ DPCO85BB@ #i$e 9& #i$e/

DPCO8 5BC3 5E%;* E0e & man"-a!t" e o im,o te #hall 1i0e e--e!t to the , i!e o- a 9"l' $ "1 o -o m"lation8 a# the !a#e ma& 9e8 a# -ixe$ 9& the 1o0e nment - om time to time (ithin 5@ $a&# - om the e!ei,t 9& #"!h man"-a!t" e o im,o te othe !omm"ni!ation in thi# 9ehal- om the 1o0e nment an$ i##"e a #",,lementa & , i!e li#t in thi# e1a $ to the $eale #8 #tate $ "1# !ont olle # an$ the 1o0e nment an$ in$i!ate ne!e##a & e-e en!e to #"!h , i!e -ixation/ 53/ E0e & man"-a!t" e im,o te o $i#t i9"to o- a -o m"lation inten$e$ -o #ale #hall $i#,la& in in$eli9le , int ma '8 on the la9el o- !ontaine o- the -o m"lation an$ the minim"m ,a!' the eo- o--e e$ -o etail #ale8 the maxim"m etail , i!e o- that -o m"lation (ith the (o $# F etail , i!e not to ex!ee$H , e!e$in1 it8 an$ Flo!al taxe# ext aH #"!!ee$in1 it/

DPCO8 5BB@ 54%5* E0e & man"-a!t" e o im,o te #hall !a & into e--e!t the , i!e o- a 9"l' $ "1 o -o m"lation8 a# the !a#e ma& 9e8 a# -ixe$ 9& the Go0e nment - om time to time8 (ithin -i-teen $a&# - om the $ate onoti-i!ation in the O--i!ial GaAette o e!ei,t o- the o $e o- the Go0e nment in thi# 9ehal9& #"!h man"-a!t" e o im,o te /

54%2* E0e & man"-a!t" e 8 im,o te o $i#t i9"to o- a -o m"lation inten$e$ -o #ale #hall $i#,la& in in$eli9le , int ma '8 on the la9el o- !ontaine o- the -o m"lation an$ the minim"m ,a!' the eo- o--e e$ -o etail #ale8 the etail , i!e othat -o m"lation noti-ie$ in the O--i!ial GaAette o o $e e$ 9& the Go0e nment in thi# 9ehal-8 (ith the (o $# F etail , i!e not to ex!ee$H , e!e$in1 it8 Flo!al 7
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P o0i$e$ that in the !a#e o- a !ontaine !on#i#tin1 o- #malle #alea9le ,a!'#8 the etail , i!e o- #"!h #malle ,a!' #hall al#o 9e $i#,la&e$ on the la9el o- ea!h #malle ,a!' an$ #"!h , i!e #hall not 9e mo e than the , o6 ata , i!e othe main ,a!' o"n$e$ o-- to the nea e#t ,ai#a/

taxe# ext aH #"!!ee$in1 it8 an$ F"n$e Go0e nment P i!e# Cont olH on a e$ #t i,8 in the !a#e o- #!he$"le$ -o m"lation#D P o0i$e$ that in the !a#e o- a !ontaine !on#i#tin1 o- #malle #alea9le ,a!'#8 the etail , i!e o- #"!h #malle ,a!' #hall al#o 9e $i#,la&e$ on the la9el oea!h #malle ,a!' an$ #"!h , i!e #hall not 9e mo e than the pro-rata etail , i!e o- the main ,a!' o"n$e$ o-- to the nea e#t ,ai#a/ 54%;* E0e & man"-a!t" e o im,o te #hall i##"e a , i!e li#t an$ #",,lementa & , i!e li#t8 ie<"i e$8 in -o m V to the $eale #8 State D "1# Cont olle # an$ the Go0e nment in$i!atin1 e-e en!e to #"!h , i!e -ixation o e0i#ion a# !o0e e$ 9& the o $e o GaAette noti-i!ation i##"e$ 9& the Go0e nment - om time to time/

25/ P i!e# to the t a$e #D6 %5* A man"-a!t" e 8 $i#t i9"to o (hole#ale #hall #ell a -o m"lation to a etaile 8 "nle## othe (i#e ,e mitte$ "n$e the , o0i#ion# o- thi# O $e o an& othe ma$e the e"n$e 8 at a , i!e e<"al to the etail , i!e %ex!l"$in1 ex!i#e $"t&8 i- an&* min"# 5EJ the eo- in the !a#e o- , i!e !ont olle$ $ "1/ %2* Not(ith#tan$in1 an&thin1 !ontaine$ in #"96,a a1 a,h %5*8 the Go0e nment ma& 9& a 1ene al o #,e!ial O $e -ix8 in ,"9li! inte e#t8 the , i!e to the (hole#ale o etaile in e#,e!t o- an& -o m"lation the , i!e o- (hi!h ha# 9een -ixe$ o e0i#e$ "n$e thi# O $e /

5@%5* E0e & man"-a!t" e 8 im,o te o $i#t i9"to o- a non6 #!he$"le$ -o m"lation inten$e$ -o #ale #hall $i#,la& in in$eli9le , int ma '8 on the la9el o!ontaine o- the -o m"lation an$ the minim"m ,a!' the eoo--e e$ -o etail #ale8 the etail , i!e o- that -o m"lation (ith the (o $# F etail , i!e not to ex!ee$H , e!e$in1 it an$ the (o $# Flo!al taxe# ext aH 8
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#"!!ee$in1 it8 an$ the (o $# FNot "n$e P i!e Cont olH on a 1 een #t i,D P o0i$e$ that in the !a#e o- a !ontaine !on#i#tin1 o- #malle #alea9le ,a!'#8 the etail , i!e o- #"!h #malle ,a!' #hall al#o 9e $i#,la&e$ on the la9el oea!h #malle ,a!' an$ #"!h , i!e #hall not 9e mo e than the pro-rata etail , i!e o- the main ,a!' o"n$e$ o-- to the nea e#t ,ai#a/ %2* E0e & man"-a!t" e o im,o te #hall i##"e a , i!e li#t an$ #",,lementa & , i!e li#t8 ie<"i e$ o- the non6#!he$"le$ -o m"lation in Fo m V to the $eale #8 State D "1# Cont olle # an$ the Go0e nment in$i!atin1 !han1e# - om time to time/ %;* E0e & etaile an$ $eale #hall $i#,la& the , i!e li#t an$ the #",,lementa & , i!e li#t8 ian&8 a# -" ni#he$ 9& the man"-a!t" e o im,o te 8 on a !on#,i!"o"# ,a t othe , emi#e# (he e he !a ie# on 9"#ine## in a manne #o a# to 9e ea#il& a!!e##i9le to an& ,e #on (i#hin1 to !on#"lt the #ame/ 5B%5* A man"-a!t" e 8 $i#t i9"to o (hole#ale #hall #ell a -o m"lation to a etaile 8 "nle## othe (i#e ,e mitte$ "n$e the , o0i#ion# o- thi# O $e o an& o $e ma$e the e"n$e 8 at a , i!e e<"al to the etail , i!e8 a# #,e!i-ie$ 9& an o $e o noti-ie$ 9& the Go0e nment %ex!l"$in1 ex!i#e $"t&8 i- an&*8 min"# #ixteen ,e !ent the eo- in the !a#e o- #!he$"le$ $ "1#/ %2* Not(ith#tan$in1 an&thin1 !ontaine$ in #"96,a a1 a,h %5*8 the Go0e nment ma& 9& a 1ene al o #,e!ial o $e -ix8 in 9
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,"9li! inte e#t8 the , i!e o-o m"lation #ol$ to the (hole#ale o etaile in e#,e!t o- an& -o m"lation the , i!e o(hi!h ha# 9een -ixe$ o e0i#e$ "n$e thi# O $e /

25/

The !om,a ati0e #tatement o- the a9o0e , o0i#ion# in$i!ate#

that ,a a 54%5* o- DPCO85BB@ i# i$enti!al to ,a a 5E%;* o- DPCO85BC3/ Pa a 54%2* o- DPCO85BB@ i# i$enti!al to ,a a 53 o- DPCO85BC3/ Pa a 54%;* o- DPCO85BB@ i# i$enti!al to ,a a 5E%;* o- DPCO85BC3 an$ ,a a 5@%5* oDPCO85BB@ i# i$enti!al to ,a a 53 o- DPCO85BC3/ 22/ In li1ht o- the #imila it& o- the a9o0e , o0i#ion#8 -o the #a'e o-

!on0enien!e8 (e #hall e-e hen!e-o th to the , o0i#ion# !ontaine$ in DPCO85BB@/ 2;/ M/ S/ Gane#h8 lea ne$ #enio !o"n#el -o the

man"-a!t" e ?$i#t i9"to a 1"e# that on a ,lain ea$in1 o- ,a a 54%5* o- the DPCO85BB@8 a man"-a!t" e i# 1i0en -i-teen $a&# - om the $ate o-

noti-i!ation o- a , i!e -ixation 9& the Go0e nment in the o--i!ial 1aAette o e!ei,t o- the , i!e -ixation o $e 9& the man"-a!t" e -o !a &in1 into e--e!t the , i!e o- the 9"l' $ "1 o -o m"lation/ Un$e ,a a 54%2* o- the

DPCO85BB@8 the man"-a!t" e i# e<"i e$ to , int in$eli9l& the etail , i!e o- the -o m"lation on the la9el o- the !ontaine o- the -o m"lation (ith the (o $# F etail , i!e not to ex!ee$H , e!e$in1 it an$ Flo!al taxe# ext aH #"!!ee$in1 it/ The e-o e8 ",to the ex,i & o- the -i-teenth $a& - om the $ate o- the noti-i!ation8 the , i!e -ixation o $e in the o--i!ial 1aAette o e!ei,t o10
Page 10

the , i!e -ixation o $e 9& the man"-a!t" e 8 the man"-a!t" e i# at li9e t& to man"-a!t" e the -o m"lation# an$ , int on them the , e6noti-i!ation , i!e# an$ !lea the #ame - om hi# -a!to & a-te ,a&in1 ex!i#e $"t& on the 9a#i# o#"!h , o0i$e$ , i!e/ 24/ M / S/ Gane#h8 lea ne$ #enio !o"n#el elie# ",on the Ci !"la

$ate$ 2C/74/5B3B i##"e$ 9& the Cent al Go0e nment (he ein it (a# !la i-ie$ that all e$"!tion# in the , i!e# o- -o m"lation# e--e!te$ - om time to time 9& the Cent al Go0e nment (o"l$ 9e a,,li!a9le to the #to!'# !lea e$ on an$ a-te the $ate o- e--e!t"ation o- e$"!tion/ The !la i-i!ato & Ci !"la -" the #a&# that , i!e li#t #hall #tate !lea l& the 9at!h n"m9e # - om (hi!h the e$"!tion i# e--e!ti0e/ It i#8 th"#8 the #"9mi##ion o- M / S/ Gane#h that the -o m"lation# (hi!h a e man"-a!t" e$ an$ !lea e$ , io to the $ate o- e--e!t"ation o- e$"!tion %the 5@th $a& a-te the $ate onoti-i!ation in the o--i!ial 1aAette o the $ate oe!ei,t o- , i!e e$"!tion an$8

-ixation? e$"!tion o $e * a e not #"9:e!t to the , i!e

a!!o $in1l&8 the #ai$ , e6e--e!ti0e 9at!h , o$"!t# !an 9e #ol$ at the , e0io"#l& exi#tin1 an$ o,e atin1 , i!e# (hi!h (o"l$ 9e , inte$ on them/ 2@/ It i# a 1"e$ 9& M / S/ Gane#h that the #ai$ !i !"la ha# not

9een (ith$ a(n an$ it ha# 9een !ontin"o"#l& o9#e 0e$ 9& the t a$e a# (ell a# 9& the Cent al Go0e nment -o #e0e al $e!a$e#/ It i# hi# #"9mi##ion that i- the inte , etation a# a9o0e i# not a!!e,te$8 the !on#e<"en!e (ill 9e that the ,e io$ o- 5@ $a&# ex, e##l& allo(e$ 9& ,a a 54%5* o- the DPCO85BB@ an$ the #,e!i-i! , o0i#ion in Fo m V e1a $in1 the e--e!ti0e 9at!h n"m9e
11
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to (hi!h the , i!e e$"!tion?-ixation (o"l$ a,,l&8 (ill all 9e en$e e$ !om,letel& meanin1le## an$ otio#e/ Gith e-e en!e to , a!ti!al , o9lem#8 it i# #"9mitte$ that the man"-a!t" e ,a&# ex!i#e $"t& on the 9a#i# o- the , inte$ , i!e at the time o- the man"-a!t" e an$ !lea an!e - om hi# -a!to & an$ al#o on the ,a&ment o- #ale# tax on the #ale , i!e !ha 1e$ 9& the man"-a!t" e to the $i#t i9"to ?(hole#ale #8 (hi!h a1ain (ill 9e on the 9a#i# o- the , inte$ , i!e/ The ,a&ment o- ex!i#e $"t& an$ #ale# tax ha0in1 9e!ome -inal8 the $i--e ential amo"nt !annot ,o##i9l& 9e e-"n$e$ an$ e6 a##e##e$/ Mo eo0e 8 i- a $i#t i9"to ?(hole#ale ? etaile ha# al ea$& ,ai$ a hi1he , i!e on the 9a#i# o- the , e0io"#l& , e0ailin1 , i!e8 he !annot ,o##i9l& 9e e<"i e$ to #ell the -o m"lation at the ne(l& e$"!e$ , i!e/ A!!o $in1 to M / S/ Gane#h8 lea ne$ #enio !o"n#el #"!h an inte , etation (ill 9e !ont a & to an$ in -a!t $e#t "!ti0e o- the , o0i#ion# o- ,a a 5B o- the DPCO85BB@/ 2E/ M / S/ Gane#h8 hea0il& elie$ ",on the :"$1ment o- thi# Co" t

in Ranbaxy Laboratories Limited1 (hi!h inte , ete$ an exem,tion noti-i!ation/ D a(in1 analo1& - om that :"$1ment8 it i# a 1"e$ that :"#t a# the exem,tion noti-i!ation (hi!h (a# i##"e$ "n$e ,a a 2@ o- the , i!e

DPCO85BB@ (a# a$$ e##e$ to the man"-a!t" e 8 #imila l&8

-ixation? e0i#ion noti-i!ation i# al#o a$$ e##e$ to the man"-a!t" e (ho i# e<"i e$ to e--e!t"ate the #ame 9& , intin1 the e0i#e$ , i!e on all , o$"!t# man"-a!t" e$ an$ !lea e$ 9& him - om the 5@th $a& a-te the $ate o1

Union of India v. Ranbaxy Laboratories Limited and

t!ers" #$2008% 7 &'' 502(

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noti-i!ation? e!ei,t o- the o $e 8 an$ al#o i##"in1 the e0i#e$ , i!e li#t $e!la in1 the e--e!ti0e 9at!h n"m9e - om (hi!h e0i#e$ , i!e (ill o,e ate/ 23/ M / S/ Gane#h8 lea ne$ #enio !o"n#el #"9mit# that the !i !"la $ate$ 2C/74/5B3B8

man"-a!t" e ?$i#t i9"to ha0in1 a!te$ a# ,e

!annot 9e la(-"ll& , o#e!"te$?,enaliAe$ #in!e the !i !"la !on#tit"te# the contemporanea expositio o- the Cent al Go0e nment (hi!h - ame$ the DPCO/ In thi# e1a $8 lea ne$ #enio !o"n#el ,la!e# elian!e ",on the $e!i#ion o- thi# Co" t in Desh Bandhu Gupta2/ Hi# #"9mi##ion i# that

"n$e the DPCO#8 e0e & , i!e li#t i# in e#,e!t o- Fe--e!ti0e 9at!h n"m9e H/ The !la i-i!ation ma$e (ith e1a $ to DPCO85B3B i# e<"all& a,,li!a9le -o inte , etation o- 5BB@8 DPCO8 #in!e ,a a 54%5* an$ 54%;* o- DPCO8 5BB@ i# i$enti!al to DPCO85B3B/ 2C/ M / S/ Gane#h8 lea ne$ #enio !o"n#el a 1"e# that the e i# no

alle1ation o- an& a!t o omi##ion 9& the man"-a!t" e ?$i#t i9"to $" in1 the ,e io$ o- 5@ $a&# allo(e$ 9& ,a a 54 o- DPCO85BB@/ He -" the #"9mit# that the inte , etation o- DPCO85B3B8 DPCO85BC3 an$ DPCO85BB@ i# no mo e a ele0ant i##"e a# (ith e--e!t - om J"ne8 275;8 DPCO8 275; ha# !ome into o,e ation an$ it# #!heme an$ , o0i#ion# a e enti el& $i--e ent - om the ea lie DPCO#/ 2B/ Rel&in1 ",on the $e!i#ion o- thi# Co" t in Usha Martin3, it i#

#"9mitte$ 9& the lea ne$ #enio !o"n#el that the i##"an!e o- 5B3B !i !"la #ho(# that t(o 0ie(# a e ,o##i9le an$8 the e-o e8 the 0ie( 9ene-i!ial to the
2 3

)es! *and!+ ,+-ta and 'om-any and t!ers v. )e.!i &to/0 1x/!an2e 3sso/iation Ltd." #$1979% 4 &'' 565( 'o..e/tor of 'entra. 1x/ise4 5atna v. Us!a 6artin Ind+stries" #$1997% 7 &'' 47(

13
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#"9:e!t

m"#t

9e

a$o,te$8

,a ti!"la l&8

to

!a#e

o-

! iminal

, o#e!"tion?,enalt&/ ;7/ It i# a 1"e$ 9& M / S/ Gane#h that the e i# no , o0i#ion in

DPCO o in the EC A!t (hi!h n"lli-ie# o #et# a#i$e ,a#t la(-"ll& !om,lete$ t an#a!tion -o #ale o- 1oo$# 9& the man"-a!t" e to the $i#t i9"to o 9& the $i#t i9"to to the etaile / The e i# al#o no , o0i#ion (hi!h e<"i e# the man"-a!t" e to e, int , o$"!t# al ea$& in the ma 'et (ith the ne( , i!e/ The , intin1 o- the , i!e i# !o0e e$ 9& Se!tion ;%-* o- the D "1# an$ Co#meti!# A!t8 5B47 an$8 the e-o e8 the e, intin1 o- the , i!e !an 9e $one onl& 9& the man"-a!t" e in hi# li!en!e man"-a!t" in1 , emi#e#/ The man"-a!t" e ha# no , i0it& (hat#oe0e (ith the etaile an$ ma& not e0en 'no( hi# i$entit&/ It i# a9#ol"tel& im,o##i9le -o the man"-a!t" e to 1et ,o##e##ion o- the 1oo$# - om la 1e n"m9e o- etaile #8 9 in1 them 9a!' to hi# -a!to &8 e, int the lo(e , i!e an$ then #en$ them 9a!' to the etaile (ith a lo(e , i!e , inte$ on it8 #o that the etaile (ho ,ai$ the hi1he , i!e to the $i#t i9"to i# then !om,elle$ to #ell the 1oo$# at a lo## at the lo(e , i!e/ The etaile (ho ha# al ea$& ,ai$ -o the 1oo$# (o"l$ ne0e ,a t (ith themK e#,e!iall& onl& -o ha0in1 them e, inte$ (ith a m"!h lo(e , i!e/ He #"9mit# that #"!h an inte , etation o- the DPCO (ill 9e "tte l& "n(o 'a9le an$ im,o##i9le to !om,l& (ith an$ an& inte , etation othe than (hat ha# 9een #tate$ in the !i !"la m"#t 9e #"mma il& e:e!te$/ ;5/ M#/ In$i a Jai#in18 lea ne$ A$$itional Soli!ito Gene al8 on the

othe han$8 a 1"e# that the #!heme o- the t(o DPCO#8 5BC3 an$ 5BB@ i#
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0e & !lea

an$ that #!heme i# that on!e the , i!e i# noti-ie$ -o a

-o m"lation8 the #ale to the !on#"me !an onl& 9e at the noti-ie$ , i!e/ Lea ne$ A$$itional Soli!ito Gene al #"9mit# that ,a a 5E o- the

DPCO85BB@ im,o#e# an a9#ol"te o9li1ation on all ,e #on# not to #ell an& -o m"lation to an& !on#"me at a , i!e ex!ee$in1 the , i!e #,e!i-ie$ in the F!" ent , i!e li#tH o , i!e in$i!ate$ on the la9el o- the !ontaine o 9a!' the eo-8 F(hi!he0e i# le##H/ ;2/ Gith e-e en!e to the $e-inition o- the ex, e##ion =, i!e li#t> in

,a a 2%"* o- DPCO85BB@ lea ne$ A$$itional Soli!ito Gene al #"9mit# that the , i!e #,e!i-ie$ in the !" ent li#t i# nothin1 9"t the !" entl& noti-ie$ , i!e o- the 9"l' $ "1 o -o m"lation "n$e the DPCO/ Fo ," ,o#e ointe , etin1 the ex, e##ion F, i!e #,e!i-ie$ in the !" ent , i!e li#tH8 it i# e##ential that the man"-a!t" e ha# not $e-a"lte$ in it# o9li1ation to i##"e , i!e li#t o #",,lementa & , i!e li#t/ The =!" ent , i!e li#t> i#8 the e-o e8 #im,l& the , i!e li#t e-le!tin1 the !" entl& o,e atin1 noti-ie$ , i!e "n$e the DPCO/ Mo eo0e 8 , i!e #,e!i-ie$ in the !" ent , i!e li#t i# nothin1 9"t the MRP e-le!te$ in !ol"mn 55 o- Fo m V/ Th"#8 e1a $le## o- the ent & in !ol"mn 558 Fe--e!ti0e 9at!h n"m9e H the , i!e #,e!i-ie$ in !ol"mn 55 i# the , i!e #,e!i-ie$ in the !" ent , i!e li#t8 -o the ," ,o#e# o- ,a a 5E/ )at!h n"m9e i# not ele0ant -o the ," ,o#e o- i$enti-&in1 thi# , i!e/ It i# the #"9mi##ion o- the lea ne$ A$$itional Soli!ito Gene al that 9at!h n"m9e i# alto1ethe $i--e ent !on!e,t (hi!h ma& 9e t a!e$ to R"le BE o- the D "1# an$ Co#meti!# R"le#8 an$ the e-e en!e to e--e!ti0e 9at!h n"m9e in Fo m
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V i# onl& -o inte nal e!o $ elate$ ," ,o#e#/ The e i# no e-e en!e to 9at!h n"m9e # in eithe 8 DPCO8 5BC3 o DPCO8 5BB@/ S"!h e-e en!e !an onl& 9e -o"n$ in Fo m V an$ Fo m V $oe# not 1i0e an& $e-inition oe--e!ti0e 9at!h n"m9e / ;;/ Lea ne$ A$$itional Soli!ito Gene al #"9mit# that the ,lain

meanin1 #"11e#t# that e0i#e$ , i!e m"#t 9e !a ie$ into e--e!t (ithin 5@ $a&#/ The (o $# F!a ie$ into e--e!tH ea$ (ith F(ithin 5@ $a&#H mean that the , i!e# o- the $ "1# a e -ixe$ F(ith e--e!t - omH -i-teen $a&# - om the $ate o- noti-i!ation/ The ex, e##ion F(ithin 5@ $a&#H in$i!ate# the o"te limit/ ;4/ The !ontention o- the lea ne$ A$$itional Soli!ito Gene al i#

that the e !annot 9e t(o $i--e ent , i!e# in the $i#t i9"tion !hain/ Ea!h othe DPCO#8 i/e/8 DPCO85B3B8 DPCO8 5BC3 an$ DPCO85BB@ !ontain# a , o0i#ion (he e the 9ene-it o- the , i!e e$"!tion (ill man$ato il& ha0e to 9e ,a##e$ on to the !on#"me - om the moment the e$"!tion 9e!ame o,e ati0e/ Ghile the e ma& 9e #e0e al ,e #on# in the $i#t i9"tion !hain8 the e i# an em9a 1o in the DPCO , e0entin1 an& ,e #on - om #ellin1 to the en$6,oint !on#"me at an&thin1 a9o0e the noti-ie$ , i!e %on!e #"!h , i!e 9e!ame o,e ati0e*/ That 9ein1 the ,o#ition8 the e !annot 9e one , i!e that i# o,e ational at the en$6,oint o- the $i#t i9"tion !hain an$ anothe , i!e ",#t eam in the $i#t i9"tion !hain/ The em,ha#i# 9& the lea ne$ A$$itional Soli!ito Gene al i# that DPCO# en#" e that !on#"me i# 1i0en the 9ene-it o- the noti-ie$ , i!e8 ",on it# noti-i!ation/ The !on#"me 1et# the 9ene-it othe noti-ie$ , i!e8 i e#,e!ti0e o- 9at!h n"m9e # #in!e the -o m"lation 9e
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inte , ete$ (ith the o9:e!t o- the DPCO a# the 1"i$in1 , in!i,le/ Relian!e i# ,la!e$ on Cynamide ndia Limited4/ ;@/ It i# al#o a 1"e$ 9& the lea ne$ A$$itional Soli!ito Gene al

that no , e:"$i!e i# !a"#e$ to the man"-a!t" e ?$i#t i9"to a# the e0i#e$ , i!e i# al#o 9a#e$ on a !o#t ,l"# metho$olo1&/ The e$"!tion in the , i!e i# onl& to e-le!t e$"!e$ !o#t an$ it #im,l& , e0ent# the man"-a!t" e # - om ma'in1 (in$-all 1ain# 9& !ha 1in1 hi1h , i!e# e0en tho"1h !o#t# ha0e e$"!e$/ A# e1a $# $i#t i9"to # o othe # in the $i#t i9"tion !hain8 it i# #"9mitte$ that it i# ,o##i9le that !e tain #to!' ha# 9een ," !ha#e$ at the hi1he an$ e0i#e$ , i!e an$ i# l&in1 (ith the $i#t i9"to o (hole#ale o etaile 9"t on!e the e0i#e$ , i!e !ome# into e--e!t8 thi# #to!' 9e!ome# "n#ella9le at the hi1he , i!e8 an$ the lo##e# o a9#o 9e$ #ome(he e in the $i#t i9"tion e$"!tion# nee$ to 9e !hain/ Ho( the

man"-a!t" e #?$i#t i9"to # an$ $eale #8 inter-se8 ma'e a an1ement# -o the#e lo##e# to 9e a9#o 9e$8 $e,en$# on the #,e!i-i! !ont a!t"al an$ ! e$it a an1ement#/ It i# ,o##i9le to (o ' o"t an a an1ement (he e the #to!' i# e!alle$ o ne!e##a & a$:"#tment# a e ma$e to e-le!t the lo(e , i!e/ The -a!t that the Chemi#t# an$ D "11i#t# Fe$e ation a$0o!ate# #"!h a me!hani#m #ho(# that it i# enti el& (ithin the ealm o- ,o##i9ilit&/ It i# em,ha#i#e$ that ,a amo"nt !on#i$e ation o- the Cent al Go0e nment i# that the e0i#e$ , i!e m"#t 9e !a ie$ into e--e!t in#o-a a# the !on#"me i#

Union of India and 3not!er v. 'ynamide India Limited and 3not!er" #$1987% 2 &'' 720(

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!on!e ne$/ It i# -o the man"-a!t" e # an$ $i#t i9"to # to ma'e a,, o, iate a an1ement# ho( the "n#ol$ #to!' i# $ealt (ith/ ;E/ A# e1a $# the !i !"la o- 2C/74/5B3B8 the #"9mi##ion o- the

lea ne$ A$$itional Soli!ito Gene al i# that DPCO85B3B #tan$# e,eale$ an$ the #o6!alle$ !i !"la i# not #a0e$ 9& the #a0in1 !la"#e a# it i# not a thin1 $one o a!tion ta'en "n$e the DPCO/ Rathe it i# !la i-i!ation o- the DPCO it#el- an$ it !annot #" 0i0e on!e the DPCO i# e,eale$/ The !i !"la o- 2C/74/5B3B (a# in the !ontext o- inte , etation o- DPCO85B37 an$ DPCO85B3B (he ea# the , e#ent matte # a e !on!e ne$ (ith DPCO85BC3 an$ DPCO85BB@/ Rel&in1 ",on a $e!i#ion o- thi# Co" t in M!s" G"#" Da$$ and %$our Mi$$s&8 it i# a 1"e$ that an exe!"ti0e in#t "!tion i##"e$ in a !e tain !ontext !annot 1o0e n a late noti-i!ation/ Mo eo0e 8 it i# #"9mitte$ that i- a !i !"la , o0i$e# an inte , etation that "n# !ont a & to the , o0i#ion# oDPCO8 the Co" t ma& examine the , o0i#ion# an$ inte , et them in thei , o,e ,e #,e!ti0e/ The !i !"la i# not 9in$in1 on the !o" t/ The !i !"la i# not i##"e$ "n$e an& #tat"to & a"tho it& an$ !annot 9e "#e$ to inte , et the , o0i#ion# o- the #tat"te/ ;3/ It i# #"9mitte$ that the !i !"la i#8 in an& e0ent8 in!on#i#tent

(ith the , o0i#ion# o- DPCO85BC3 an$ DPCO85BB@/ It onl& e, e#ent# the $e,a tment># 0ie( at the time (hi!h ma& ha0e 9een e oneo"#/ The e i# no e#to,,el a1ain#t #tat"te/ In thi# e1a $8 the $e!i#ion o- thi# Co" t in Ben'a$ ron Corporation and (nother) i# elie$ ",on/
5 6

&tate of 6ad!ya 5rades! and anot!er v. 67s. ,.&. )a.. and 8.o+r 6i..s"#1992 &+--.$1% &'' 150( *en2a. Iron 'or-oration and anot!er v. 'ommer/ia. 9ax ffi/er and t!ers" #1994 &+--.$1% &'' 310(

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;C/

It i# al#o a 1"e$ 9& the lea ne$ A$$itional Soli!ito Gene al

that a !i !"la (hi!h i# !ont a & to the #tat"to & , o0i#ion# ha# no exi#ten!e in la(/ Ratan Me$tin' * +ire ndustries, i# , e##e$ into #e 0i!e in thi# e1a $/ In an& !a#e8 it i# #"9mitte$ that the man"-a!t" e ?$i#t i9"to ha0e not elie$ on the !i !"la in 1oo$ -aith/ In 5BCC8 the e i# !o e#,on$en!e in the Glaxo 9et(een a,,ellant an$ e#,on$ent (he e a,,ellant (a# !lea l& ,"t to noti!e that it (a# e<"i e$ to !om,l& (ith noti-ie$ , i!e/ De#,ite thi# !o e#,on$en!e8 the a,,ellant ele!te$ not to !om,l& (ith the noti-ie$ , i!e/ Th"#8 the a,,ellant !an ha $l& el& on the !i !"la on!e the e#,on$ent ha# ,"t -o (a $ a !e tain inte , etation in 5BBC/ The a,,ellant (a# -"ll& a(a e o- the inte , etation ta'en 9& the e#,on$ent an$ (ill-"ll& ele!te$ to a!t in !ont a0ention o- the DPCO/ That 9ein1 the !a#e8 the a,,ellant !annot no( a!t o9li0io"# o- !o e#,on$en!e in 5BCC an$ ,la!e elian!e on 5B3B !i !"la / ;B/ It i# the #"9mi##ion o- the lea ne$ A$$itional Soli!ito Gene al

that the ela9elin1 i# ,e mitte$ "n$e la(/ Ea lie 8 i##"e o- , intin1 , i!e# (a# 1o0e ne$ 9& the Stan$a $# o- Gei1ht# an$ Mea#" e# A!t8 5B3E/ No( it i# 1o0e ne$ 9& Le1al Met olo1& A!t8 277B/ Le1al Met olo1& %Pa!'a1e$ Commo$itie#* R"le#8 2755 %-o #ho t8 =2755 R"le#>* !ontain# an exem,tion -o ,ha ma!e"ti!al# 9ein1 !o1niAant o- the -a!t that Go0e nment !an -ix , i!e# at an& time an$ #"!h , i!e# (o"l$ nee$ to 9e 1i0en e--e!t to (ithin the #tat"to il& , e#! i9e$ ,e io$/ The e-o e8 ela9elin1 ma& 9e e<"i e$
7

'ommissioner of 'entra. 1x/ise4 *o.-+r v. Ratan 6e.tin2 : ;ire Ind+stries" #$2008% 13 &'' 1(

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(he e the e i# a e0i#ion in , i!e8 an$ , e0ailin1 la( #,e!i-i!all& ,e mit# that 9& exem,tin1 , i!e - om the i1o # o- 2755 R"le#/ 47/ The Cent al Go0e nment i# em,o(e e$ 9& Se!tion ; o- EC A!t

to ma'e an o $e , o0i$in1 -o !ont ollin1 the , i!e at (hi!h the e##ential !ommo$it& ma& 9e 9o"1ht o #ol$/ 45/ A Committee on D "1# an$ Pha ma!e"ti!al# In$"#t & %'no(n

a# the Hathi Committee* (a# a,,ointe$ 9& the Cent al Go0e nment to examine the 0a io"# -a!et# o- the $ "1 in$"#t & in In$ia in!l"$in1 the mea#" e# ta'en #o -a to e$"!e , i!e# o- $ "1# -o the !on#"me 8 an$ to e!ommen$ #"!h -" the mea#" e# a# ma& 9e ne!e##a & to ationaliAe the , i!e# o- 9a#i! $ "1# an$ -o m"lation#/ The Hathi Committee in it# Re,o t o9#e 0e$ that the e (a# no :"#ti-i!ation -o the $ "1 in$"#t & !ha 1in1 , i!e# an$ ha0in1 a , o$"!tion ,atte n (hi!h i# 9a#e$ not ",on the nee$# o- the !omm"nit& 9"t on a11 e##i0e ma 'etin1 ta!ti!# an$ ! eate $eman$/ 42/ Follo(in1 the Hathi Committee Re,o t8 the Go0e nment -i #t

- ame$ the #tatement on $ "1 ,oli!& an$ then i##"e$ DPCO85B3B/ The DPCO85B37 (a# a!!o $in1l& e,eale$/ DPCO85B3B i# e,eale$ 9&

DPCO85BC3 an$ DPCO85BC3 i# e,eale$ 9& DPCO85BB@/ 4;/ In o $e to ha0e the , o,e ,e #,e!ti0e o- the matte 8 it i#

ne!e##a & that !e tain , o0i#ion# o- the DPCO85BB@ a e #" 0e&e$/ Pa a1 a,h 2 i# an inte , etation !la"#e8 it $e-ine# !e tain ex, e##ion# o!!" in1 in DPCO a# "n$e D
F2/ +++ 20
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%a* F9"l' $ "1H mean# an& ,ha ma!e"ti!al8 !hemi!al8 9iolo1i!al o ,lant , o$"!t in!l"$in1 it# #alt#8 e#te #8 #te eo6i#ome # an$ $e i0ati0e#8 !on-o min1 to ,ha ma!o,oeial o othe #tan$a $# #,e!i-ie$ in the Se!on$ S!he$"le to the D "1# an$ Co#meti!# A!t8 5B47%2; o- 5B47*8 an$ (hi!h i# "#e$ a# #"!h o a# an in1 e$ient in an& -o m"lationK ////////// /// %$* F$eale H mean# a ,e #on !a &in1 on the 9"#ine## o- ," !ha#e o #ale o- $ "1#8 (hethe a# a (hole#ale o etaile an$ (hethe o not in !on:"n!tion (ith an& othe 9"#ine## an$ in!l"$e# hi# a1entK %e* F$i#t i9"to H mean# a $i#t i9"to o- $ "1# o hi# a1ent o a #to!'i#t a,,ointe$ 9& a man"-a!t" e o an im,o te -o #to!'in1 hi# $ "1# -o #ale to a $eale K ///////////// %m* Fman"-a!t" e H mean# an& ,e #on (ho man"-a!t" e# a $ "1K ///////////// % * F, i!e li#tH mean# a , i!e li#t e-e e$ to in ,a a# 54 an$ 5@ an$ in!l"$e# a #",,lementa & , i!e li#tK %#* F etail , i!eH mean# the etail , i!e o- a $ "1 a i0e$ at o -ixe$ in a!!o $an!e (ith the , o0i#ion# o- thi# O $e an$ in!l"$e# a !eilin1 , i!eK %t* F etaile H mean# a $eale !a &in1 on the etail 9"#ine## o- #ale o- $ "1# to !"#tome #K %"* F#!he$"le$ 9"l' $ "1H mean# a 9"l' $ "1 #,e!i-ie$ in the Fi #t S!he$"leK /////////// %&* F(hole#ale H mean# a $eale o hi# a1ent o a #to!'i#t a,,ointe$ 9& a man"-a!t" e o an im,o te -o the #ale o- hi# $ "1# to a etaile 8 ho#,ital8 $i#,en#a &8 me$i!al8 e$"!ational o e#ea !h in#tit"tion ," !ha#in1 9"l' <"antitie# o$ "1#/ / / / / / / / // /H

44/

Un$e ,a a1 a,h ;8 the Cent al Go0e nment i# em,o(e e$ to e1"latin1 the e<"ita9le $i#t i9"tion o-

-ix , i!e o- the 9"l' $ "1# -o

in$i1eno"#l& man"-a!t" e$ 9"l' $ "1# an$ the maxim"m , i!e at (hi!h the 9"l' $ "1 #hall 9e #ol$/ S"!h -ixation o- maxim"m #ale , i!e o- 9"l' $ "1# #,e!i-ie$ in the Fi #t S!he$"le ha# to 9e $one 9& noti-i!ation in the o--i!ial 1aAette/ On!e the Go0e nment exe !i#e# the ,o(e an$ -ixe# maxim"m #ale , i!e o- 9"l' $ "1# #,e!i-ie$ in the Fi #t S!he$"le8 the e i# 9an to #ell a 9"l' $ "1 at a , i!e ex!ee$in1 the maxim"m #ale , i!e #o -ixe$ ,l"# lo!al
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taxe#8 i- an&/ It i# the o9li1ation o- the man"-a!t" e 8 i- he !ommen!e# , o$"!tion o- the 9"l' $ "1 a-te the !ommen!ement o- the o $e 8 to -" ni#h the $etail# to the Go0e nment in Fo m I an$ an& #"!h a$$itional in-o mation a# ma& 9e e<"i e$ 9& the Go0e nment (ithin 5@ $a&# o- the

!ommen!ement o- the , o$"!tion o- #"!h 9"l' $ "1/ I- an& man"-a!t" e $e#i e# e0i#ion o- the maxim"m #ale , i!e o- a 9"l' $ "1 -ixe$ "n$e #"96 ,a a1 a,h %5* o %4* o a# ,e mi##i9le "n$e #"96,a a1 a,h %;*8 it i# ,e mitte$ to ma'e an a,,li!ation to the Go0e nment in Fo m I/ 4@/ In#o-a a# a etail , i!e o- #!he$"le$ -o m"lation# i#

!on!e ne$8 "n$e ,a a1 a,h 38 the Cent al Go0e nment i# em,o(e e$ to -ix the #ame in a!!o $an!e (ith the -o m"la lai$ $o(n the ein/ The metho$ o- !al!"lation o- etail , i!e o- -o m"lation i# !lea l& , o0i$e$ in ,a a1 a,h 3/ Gith a 0ie( to ena9le the man"-a!t" e # o- #imila -o m"lation# to #ell tho#e -o m"lation# in ,a!' #iAe $i--e ent to the ,a!' #iAe -o (hi!h !eilin1 , i!e ha# 9een noti-ie$ "n$e #"96,a a1 a,h# %5* an$ %2* o- ,a a1 a,h B8 man"-a!t" e # ha0e to (o ' o"t the , i!e -o thei e#,e!ti0e -o m"lation

,a!'# in a!!o $an!e (ith #"!h no m# a# ma& 9e noti-ie$ 9& the Go0e nment - om time to time/ The man"-a!t" e i# e<"i e$ to intimate the , i!e o- -o m"lation ,a!'8 #o (o 'e$ o"t8 to the Go0e nment an$ #"!h -o m"lation ,a!' !an 9e elea#e$ -o #ale onl& a-te the ex,i & o- E7 $a&# a-te #"!h intimation/ Ho(e0e 8 Go0e nment ma&8 (ithin it# ,o(e 8 e0i#e the , i!e #o intimate$ 9& the man"-a!t" e an$ ",on #"!h e0i#ion the

22
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man"-a!t" e i# not ,e mitte$ to #ell #"!h -o m"lation at a , i!e ex!ee$in1 the , i!e #o e0i#e$/ 4E/ Un$e ,a a1 a,h 5;8 the Go0e nment ha# 9een !on-e e$ (ith e<"i in1 the man"-a!t" e #8 im,o te # o $i#t i9"to #

the o0e i$in1 ,o(e

to $e,o#it the amo"nt a!! "e$ $"e to !ha 1in1 o- , i!e# hi1he than tho#e -ixe$ o noti-ie$ 9& the Go0e nment "n$e the DPCO85BC3 an$ #o al#o "n$e DPCO85BB@/ 43/ One -in$#8 the e-o e8 that the , i!e -ixation 9& the Cent al

Go0e nment "n$e DPCO i# in the nat" e o- le1i#lati0e mea#" e an$ the $ominant o9:e!t an$ ," ,o#e o- #"!h , i!e -ixation i# the e<"ita9le $i#t i9"tion an$ a0aila9ilit& o- !ommo$itie# at -ai , i!e/ The (hole i$ea 9ehin$ #"!h , i!e -ixation i# to !ont ol hoa $in18 !o ne in1 o a ti-i!ial #ho t #",,l& an$ 1i0e 9ene-it to the !on#"me / The e1"lation o- $ "1 , i!e 9ein1 "ltimatel& -o the 9ene-it o- the !on#"me 8 (e m"#t no( !on#i$e the e--e!t o- ,a a1 a,h 54%5*8%2* an$ %;*8 ,a a1 a,h 5E %;*8 ,a a1 a,h 5B an$ Fo m V/ 4C/ Pa a1 a,h 54 o- DPCO85BB@ ma'e# , o0i#ion -o !a &in1 o"t e0i#e$ 9& the Go0e nment/ S"96,a a1 a,h

the e--e!t o- the , i!e -ixe$ o

%5* o- ,a a1 a,h 54 , o0i$e# that e0e & man"-a!t" e o im,o te #hall !a & into e--e!t the , i!e o- a 9"l' $ "1 o -o m"lation8 a# -ixe$ 9& the Go0e nment8 (ithin -i-teen $a&# - om the $ate o- noti-i!ation in the o--i!ial 1aAette o e!ei,t o- the o $e o- the Go0e nment 9& #"!h man"-a!t" e o im,o te / Doe# it mean that $" in1 thi# ,e io$ o- 5@ $a&#8 it i# o,en to the
23
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man"-a!t" e to man"-a!t" e an$ !lea the 9"l' $ "1 o -o m"lation at , e6 noti-i!ation , i!e#L Ge $o not thin' #o/ In o" 0ie(8 #"96,a a1 a,h %5* o,a a1 a,h 54 $oe# not $e#e 0e to 9e 1i0en a !on#t "!tion (hi!h i# $e o1ato & to the o9:e!t an$ #!heme o- DPCO85BB@/ It i# im,o tant to 9ea in min$ that "n$e ,a a1 a,h 54%2*8 the man"-a!t" e i# e<"i e$ to , int the etail , i!e o- the -o m"lation on the la9el o- the !ontaine o- the -o m"lation/ Thi# i# ex, e##e$ 9& the (o $# F etail , i!e not to ex!ee$H , e!e$in1 it Flo!al taxe# ext aH #"!!ee$in1 it/ In o" 0ie(8 #"96,a a %2* o,a a 54 $oe# not8 in an& manne 8 #",,o t the !ontention o- the man"-a!t" e ?$i#t i9"to that ",to to the ex,i & o- the -i-teenth $a& - om the $ate o- noti-i!ation o- the , i!e -ixation o $e in the o--i!ial 1aAette o e!ei,t o- the , i!e -ixation o $e 9& the man"-a!t" e 8 the man"-a!t" e i# at li9e t& to man"-a!t" e the -o m"lation an$ , int on them the , e6noti-i!ation , i!e#/ 4B/ The t "e im,o t o- ,a a1 a,h 54%5* i# that on!e the , i!e

noti-i!ation i# 1aAette$8 it ta'e# e--e!t imme$iatel& tho"1h it# en-o !ement i# ,o#t,one$ 9& -i-teen $a&# to ena9le the man"-a!t" e # an$ othe # to ma'e #"ita9le a an1ement# (ith e1a $ to "n#ol$ #to!'#/ Ge a1 ee (ith lea ne$ A$$itional Soli!ito Gene al that the ,e io$ o- 5@ $a&# i# #im,l& a 1 a!e ,e io$ o !oolin1 ,e io$ allo(e$ to man"-a!t" e # to a$:"#t thei 9"#ine## in a manne (he e a,, o, iate a an1ement# a e

ma$e (ith e1a $ to the "n#ol$ #to!'# in the $i#t i9"tion !hain/ The a 1"ment o- the man"-a!t" e o $i#t i9"to 8 i- a!!e,te$8 that the #to!'# !lea e$ 9& the man"-a!t" e 9e-o e the -i-teenth $a& !an 9e #ol$ to the
24
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!on#"me at the hi1he "n e0i#e$ , i!e then8 in o" 0ie(8 that ma& e#"lt in #ame -o m"lation 9ein1 o--e e$ -o #ale to a !on#"me at t(o $i--e ent , i!e#/ Thi# m"#t 9e a0oi$e$ an$8 the e-o e8 (e $o not thin' that the inte , etation ,"t -o th 9& M / S/ Gane#h i# ea#ona9le/ It $oe# not $e#e 0e a!!e,tan!e/ @7/ Then8 the inte , etation to #"96,a a1 a,h %5* o- ,a a1 a,h 54

" 1e$ on 9ehal- o- the man"-a!t" e ?$i#t i9"to ma& al#o e#"lt in mi#"#e 9& the man"-a!t" e ina#m"!h a# the man"-a!t" e ma& in! ea#e man"-a!t" e o- the 9"l' $ "1# $" in1 -i-teen6$a& ,e io$ o- noti-ie$ , i!e an$ !lea that #to!' at the "n e0i#e$?hi1he , i!e/ Ge a e a- ai$8 thi# inte , etation (ill al#o lea$ to - "#t atin1 the e1"lato & e1ime (hi!h i# #o"1ht to 9e ,"t in ,la!e 9& DPCO/ @5/ The #enio !o"n#el -o the man"-a!t" e !onten$# that "n$e

,a a1 a,h 5@ o- DPCO85BB@8 it i# in!"m9ent to , int the maxim"m etail , i!e on the , o$"!t an$ that too in$eli9l&/ The e i# no , o0i#ion -o e, intin1 o- the la9el# o o- et" n o- $ "1# on!e the& lea0e the -a!to & , emi#e#/ Th"#8 the 9at!he# (hi!h ha0e 9een man"-a!t" e$ an$ #tam,e$ (ith ol$ , i!e# !an !ontin"e to 9e #ol$ at tho#e , i!e#/ Ge $o not -in$ an& me it in the a 1"ment/ The DPCO $e-ine# =$eale >8 =$i#t i9"to >8

=man"-a!t" e >8 = etaile > an$ =(hole#ale >/ The , o0i#ion# !ontaine$ in ,a a1 a,h# ;8C8 B an$ othe ele0ant , o0i#ion# !lea l& #ho( that DPCO

e--e!ti0el& !o0e # the !hain - om man"-a!t" e o- the 9"l' $ "1 9& the man"-a!t" e to #ale o- -o m"lation to !on#"me tho"1h the e ma& 9e
25
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#e0e al ,e #on# in the $i#t i9"tion !hain/ The "ltimate o9:e!t o- the DPCO i# that the e i# no $e!e,tion to a !on#"me an$ he i# #ol$ the -o m"lation at a , i!e not ex!ee$in1 the , i!e #,e!i-ie$ in the !" ent , i!e li#t o , i!e in$i!ate$ on the la9el o- the !ontaine o ,a!' the eo-8 (hi!he0e i# le##/ Lo1i!all& it -ollo(# that the e !annot 9e t(o , i!e# at the en$ ,oint o- the $i#t i9"tion !hain $e,en$in1 on the 9at!h n"m9e / A !on#"me a,, oa!hin1 a !hemi#t? etaile !an ha $l& 9e o--e e$ t(o , i!e# -o the 0e & #ame , o$"!t 9a#e$ onl& on the $i--e en!e in 9at!h n"m9e #/ Con#"me m"#t 1et the 9ene-it o- the noti-ie$ , i!e/ That i# the "ltimate o9:e!ti0e oDPCO/ The 9at!h n"m9e !annot o0e i$e the 9ene-it to (hi!h a !on#"me i# entitle$ on , i!e e$"!tion o- a -o m"lation/ A -ai ea$in1 o- DPCO

lea0e# no manne o- $o"9t that a -o m"lation !annot 9e #ol$ to the !on#"me at the hi1he , i!e %-o ea lie 9at!h n"m9e #*/ In thi# 0ie( o- the matte 8 (e -in$ me it in the #"9mi##ion o- the lea ne$ A$$itional Soli!ito Gene al that the , o0i#ion# o- DPCO e<"i e# not :"#t the en$ ,oint #ale to 9e at the noti-ie$ , i!e8 9"t al#o e0e & #ale (ithin the $i#t i9"tion !hain m"#t 9e at the noti-ie$ , i!e8 i- #"!h #ale i# ma$e a-te the $ate on (hi!h #ale , i!e i# o,e ati0e/ @2/ Pa a1 a,h 5E o- DPCO85BB@ 9an# #ale o- 9"l' $ "1 o

-o m"lation to a !on#"me at a , i!e ex!ee$in1 the , i!e #,e!i-ie$ in the !" ent , i!e li#t o , i!e in$i!ate$ on the la9el o- the !ontaine o ,a!' the eo- (hi!he0e i# le##8 ,l"# all taxe#8 i- an& ,a&a9le/ The ex, e##ion# =!" ent , i!e li#t> an$ =(hi!he0e i# le##> in ,a a1 a,h 5E a e #i1ni-i!ant
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ex, e##ion#/ Ge -in$ o" #el0e# in a1 eement (ith the #"9mi##ion o- the lea ne$ A$$itional Soli!ito Gene al that the !" ent , i!e li#t i# #im,l& the , i!e e-le!tin1 the !" entl& o,e atin1 noti-ie$ , i!e "n$e the DPCO/ On!e a , i!e i# noti-ie$ -o a -o m"lation8 it ta'e# e--e!t imme$iatel& an$ #ale othe -o m"lation to the !on#"me ha# onl& to 9e at the noti-ie$ , i!e/ Thi# i# the ,lain an$ o $ina & meanin1 o- ,a a1 a,h 5E/ The ex, e##ion8 =(hi!he0e i# le##> -" the ma'e# it an a9#ol"te o9li1ation on all !on!e ne$ not to #ell an& -o m"lation to an& !on#"me at a , i!e ex!ee$in1 , i!e #,e!i-ie$ in the !" ent , i!e li#t o , i!e in$i!ate$ on the la9el o- the !ontaine o ,a!' the eo- (hi!he0e i# le##/ @;/ The e<"i ement o- i##"an!e o- a , i!e li#t in Fo m V 9& the

man"-a!t" e to the $eale #8 State D "1# Cont olle # an$ the Go0e nment (hi!h mention# man$ato il& e--e!ti0e 9at!h n"m9e an$ the $ate the eo- i# o- no eal hel, in !on#t "!tion o- ,a a1 a,h 54/ Mo eo0e 8 i- the a 1"ment o- M / S/ Gane#h (ith e-e en!e to Fo m V that e0e & , i!e li#t i# in e#,e!t o- Fe--e!ti0e 9at!h n"m9e H onl&8 i# a!!e,te$8 it ma& ha0e e--e!t oo0e i$in1 the enti e #!heme o- DPCO/ In o" 0ie(8 thi# !annot 9e $one/ @4/ In Cynamide ndia Limited-8 tho"1h the Co" t (a# !on!e ne$

(ith !hallen1e to the noti-i!ation# i##"e$ 9& the Cent al Go0e nment -ixin1 the maxim"m , i!e# at (hi!h 0a io"# in$i1eno"#l& man"-a!t" e$ 9"l' $ "1# !o"l$ 9e #ol$ "n$e the DPCO85B3B 9"t the , e-ato & #tatement ma$e 9& thi# Co" t in ,a a1 a,h 2 i# (o th noti!in1/ In ,a a1 a,h 2 %P1/ 3;;* o- the Re,o t8 the Co" t o9#e 0e$D
27
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F2/ P o-itee in18 9& it#el-8 i# e0il/ P o-itee in1 in the #!a !e e#o" !e# o- the !omm"nit&8 m"!h nee$e$ li-e6#"#tainin1 -oo$#t"--# an$ li-e6#a0in1 $ "1# i# $ia9oli!/ It i# a mena!e (hi!h ha# to 9e -ette e$ an$ !" 9e$/ One o- the , in!i,al o9:e!ti0e# o- the E##ential Commo$itie# A!t8 5B@@ i# , e!i#el& that/ It m"#t 9e emem9e e$ that A ti!le ;B%b* en:oin# a $"t& on the State to(a $# #e!" in1 =that the o(ne #hi, an$ !ont ol o- the mate ial e#o" !e# o- the !omm"nit& a e #o $i#t i9"te$ a# 9e#t to #"9#e 0e the !ommon 1oo$>H/ @@/ Ge a e o- the !on#i$e e$ 0ie( that i- an inte , etation o-

,a a1 a,h 54%5*8%2*%;*8 ,a a1 a,h 5E%;* an$ ,a a1 a,h 5B o- DPCO85BB@ e#"lt# in - "#t atin1 it# o9:e!t an$ lea$# to $enial o- the 9ene-it o- !" ent noti-ie$ , i!e to the !on#"me 8 then #"!h inte , etation m"#t 9e a0oi$e$/ Ge8 the e-o e8 -in$ it $i--i!"lt to a!!e,t the !on#t "!tion ,"t to the a9o0e , o0i#ion# 9& M / S/ Gane#h/ @E/ Ge ma& no( $eal (ith the !i !"la $ate$ 2C/74/5B3B ",on

(hi!h hea0& elian!e ha# 9een ,la!e$ 9& M / S/ Gane#h8 lea ne$ #enio !o"n#el -o the man"-a!t" e ?$i#t i9"to / It i# t "e that the , in!i,le o-

contemporanea expositio 1"i$e# that !ontem,o aneo"# a$mini#t ati0e !on#t "!tion8 "nle## !lea l& ( on18 #ho"l$ 9e 1i0en !on#i$e a9le (ei1ht an$ #ho"l$ not 9e li1htl& o0e t" ne$ 9"t in li1ht o- the !on#t "!tion o- the ele0ant , o0i#ion# in$i!ate$ 9& "# a9o0e8 the 0ie( in the !i !"la !annot 9e -ollo(e$ an$ ",hel$/ @3/ In Usha Martin ndustries38 (hile $ealin1 (ith exem,tion

noti-i!ation i##"e$ "n$e the Cent al Ex!i#e# an$ Salt A!t8 5B448 thi# Co" t in ,a a1 a,h#5B an$ 27 o9#e 0e$ a# -ollo(#D
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$19. No $o"9t the !o" t ha# to inte , et #tat"to & , o0i#ion# an$ noti-i!ation# the e"n$e a# the& a e (ith em,ha#i# to the intention o- the le1i#lat" e/ )"t (hen the )oa $ ma$e all othe # to "n$e #tan$ a noti-i!ation in a ,a ti!"la manne an$ (hen the latte ha0e a!te$ a!!o $in1l&8 i# it o,en to the Re0en"e to t" n a1ain#t #"!h ,e #on# on a , emi#e !ont a & to #"!h in#t "!tion#L 20. Se!tion ;36) o- the A!t en:oin# on the )oa $ a $"t& to i##"e #"!h in#t "!tion# an$ $i e!tion# to the ex!i#e o--i!e # a# the )oa $ !on#i$e # ne!e##a & o ex,e$ient F-o the ," ,o#e o- "ni-o mit& in the !la##i-i!ation o- ex!i#a9le 1oo$# o (ith e#,e!t to le0& o- $"t& ex!i#e$ on #"!h 1oo$#H/ It i# t "e that Se!tion ;36) (a# in#e te$ in the A!t onl& in De!em9e 5BC@ 9"t that -a!t !annot (hittle $o(n the 9in$in1 e--e!t o- the !i !"la # o in#t "!tion# i##"e$ 9& the )oa $ ea lie / S"!h in#t "!tion# (e e not i##"e$ ea lie -o -an!& o a# it"al#/ E0en the , e6amen$ment !i !"la # (e e i##"e$ -o the #ame ," ,o#e o- a!hie0in1 "ni-o mit& in im,o#in1 ex!i#e $"t& on ex!i#a9le 1oo$#/ So the !i !"la 8 (hethe i##"e$ 9e-o e De!em9e 5BC@ o the ea-te #ho"l$ ha0e the #ame 9in$in1 e--e!t on the De,a tment/H

@C/

In ndian .i$ Corporation/8 thi# Co" t !"lle$ o"t the -ollo(in1

, in!i,le# in elation to the !i !"la # i##"e$ 9& the Go0e nment "n$e the -i#!al la(# %In!ome Tax A!t an$ Cent al Ex!i#e A!t* a# -ollo(#D
F5/Altho"1h a !i !"la i# not 9in$in1 on a !o" t o an a##e##ee8 it i# not o,en to the Re0en"e to ai#e a !ontention that i# !ont a & to a 9in$in1 !i !"la 9& the )oa $/ Ghen a !i !"la emain# in o,e ation8 the Re0en"e i# 9o"n$ 9& it an$ !annot 9e allo(e$ to ,lea$ that i# not 0ali$ no that it i# !ont a & to the te m# o- the #tat"te/ 2/ De#,ite the $e!i#ion o- thi# Co" t8 the De,a tment !annot 9e ,e mitte$ to ta'e a #tan$ !ont a & to the in#t "!tion# i##"e$ 9& the )oa $/ ;/ A #ho(6!a"#e noti!e an$ $eman$ !ont a & to the exi#tin1 !i !"la # o- the )oa $ a e ab initio 9a$/ 4/ It i# not o,en to the Re0en"e to a$0an!e an a 1"ment o -ile an a,,eal !ont a & to the !i !"la #/H

@B/

The a9o0e le1al ,o#ition !"lle$ o"t in ndian .i$ Corporation/

ha# 9een -ollo(e$ in (r0i0a ndustries1/

'ommissioner of '+stoms4 'a./+tta and ot!ers v. Indian i. 'or-oration Limited and 3nr" #$2004% 3 &'' 488( 9 Union of India v. 3rviva Ind+stries $I% Ltd." #2007$209% 1.L.9. 5 $&.'.%(
8

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E7/

In o" 0ie(8 it i# (ell #ettle$ that i- the $e,a tmental !i !"la

, o0i$e# an inte , etation (hi!h "n# !ont a & to the , o0i#ion# o- la(8 #"!h inte , etation !annot 9in$ the Co" t/ 5B3B !i !"la -all# in #"!h !ate1o &/ Mo eo0e 8 the 5B3B !i !"la i# (ith e-e en!e to the DPCO85B3B (he ea# (e a e !on!e ne$ (ith DPCO8 5BC3 an$ DPCO85BB@/ Ge a e not im, e##e$ 9& the a 1"ment o- M / S/ Gane#h that in 0ie( o- the #a0in1 !la"#e in DPCO85BC38 the !i !"la i# #a0e$ (hi!h i# -" the #a0e$ 9& the #a0in1 !la"#e in DPCO85BB@/ E5/ M/ S/ Gane#h8 al#o lea ne$ #enio !o"n#el -o the

man"-a!t" e ?$i#t i9"to

elie$ ",on a $e!i#ion o- thi# Co" t in

Ranbaxy Laboratories18 (he ein thi# Co" t ha$ an o!!a#ion to inte , et an exem,tion noti-i!ation i##"e$ "n$e ,a a1 a,h 2@ o- the DPCO85BB@/ )& the noti-i!ation $ate$ 2B/7C/5BB@8 the exem,tion (a# 1 ante$ to Ran9ax& in e#,e!t o- PentaAo!ine an$ it# -o m"lation# ",to ;5/57/5BBB/ Thi# Co" t hel$ that the #ai$ exem,tion (a# a0aila9le in e#,e!t o- #"!h , o$"!t# man"-a!t" e$ ",to ;5/57/5BBB8 e0en tho"1h the #ame mi1ht 9e #ol$ a-te (a $#/ It i# a 1"e$ that :"#t a# the exem,tion noti-i!ation i##"e$ "n$e Se!tion 2@ o- the DPCO85BB@ (a# a$$ e##e$ to the man"-a!t" e 8 #imila l&8 a , i!e -ixation? e0i#ion noti-i!ation i# al#o a$$ e##e$ to the man"-a!t" e (ho i# e<"i e$ to e--e!t"ate the #ame 9& , intin1 the e0i#e$ , i!e on all , o$"!t# man"-a!t" e$ an$ !lea e$ 9& him - om the 5@ th $a& a-te the $ate o- the noti-i!ation? e!ei,t o- the o $e 8 an$ al#o i##"in1 a e0i#e$ , i!e li#t $e!la in1 the e--e!ti0e 9at!h n"m9e - om (hi!h the
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e0i#e$ , i!e (ill o,e ate/ It i# #"9mitte$ that the ea#onin1 o- the Co" t in Ranbaxy Laboratories1 i# $i e!tl& a,,li!a9le to the , e#ent #it"ation 9e!a"#e the !on!e,t"al i##"e a i#in1 in 9oth the !a#e# i# #ame/ E2/ In Ranbaxy Laboratories18 the exem,tion noti-i!ation $ate$

2B/7C/5BB@ i# e, o$"!e$ in ,a a1 a,h 27 o- the Re,o t (hi!h ea$# a# -ollo(#D

FS/O/ No/ 35@; %E*8 in exe !i#e o- the ,o(e # !on-e e$ 9& #"96,a a %5* o- Pa a 2@ o- the D "1# %P i!e# Cont ol* O $e 8 5BB@8 the Cent al Go0e nment ha0in1 e1a $ to the -a!to # #,e!i-ie$ in !la"#e % e* o- #"96,a a %2* o- Pa a 2@ o- the #ai$ O $e an$ al#o ha0in1 9een #ati#-ie$ -o the nee$ to $o #o in the ,"9li! inte e#t he e9& exem,t# the 9"l' $ "1 an$ -o m"lation# 9a#e$ the e",on #,e!i-ie$ in Col"mn 2 o- the Ta9le 9elo( (hi!h i# man"-a!t" e$ 9& the Com,an& #,e!i-ie$ in the !o e#,on$in1 ent & in Col"mn ; - om the o,e ation o- , i!e !ont ol #ti,"late$ in #"96,a a %5* o- Pa a ;8 #"96,a a %5* o- Pa a C an$ #"96,a a %5* o- Pa a B o- the #ai$ O $e 8 ", to the ,e io$ a# in$i!ate$ in Col"mn 4 the eo-/ TABLE

Sl. No. Name of the product 1 1. 2

Name of the company Period up to which the Exemption is granted 3 4

31 1! 1"""#

Pentazocine and its formulations M/s Ranbaxy Laboratories Ltd.

63.

In ,a a1 a,h 23 o- the Re,o t in Ranbaxy Laboratories1, thi# Co" t hel$ a# "n$e D

F23. The !o" t (hile !on#t "in1 an exem,tion noti-i!ation !annot lo#e #i1ht o- the 1 o"n$ ealitie# in!l"$in1 the , o!e## o- ma 'etin1 an$ #ale/ The exem,tion o $e $ate$ 2B6C65BB@ i# !lea an$ "nam9i1"o"#/ )& ea#on the eo(hat ha# 9een exem,te$ i# the $ "1 (hi!h (a# man"-a!t" e$ 9& the Com,an& an$ the a ea o- exem,tion i# - om the o,e ation o- the , i!e !ont ol/ The& ha0e a $i e!t nex"#/ The& a e !o elate$ (ith ea!h othe / Ghile 31
Page 31

!on#t "in1 an exem,tion noti-i!ation not onl& a , a1mati! 0ie( i# e<"i e$ to 9e ta'en 9"t al#o the , a!ti!al a#,e!t oit/ A man"-a!t" e (o"l$ not 'no( a# to (hen the $ "1 (o"l$ 9e #ol$/ It ha# no !ont ol o0e it/ It# !ont ol o0e the $ "1 (o"l$ en$ (hen it i# $i#,at!he$ to the $i#t i9"to / The $i#t i9"to ma& $i#,at!h it to the (hole#elle / A -e( othe # ma& $eal (ith the #ame 9e-o e it ea!he# the han$# o- the etaile / The man"-a!t" e !annot #",e 0i#e o o0e #ee a# to ho( othe # (o"l$ 9e $ealin1 (ith it# , o$"!t/ All #tat"te# ha0e to 9e !on#i$e e$ in li1ht o- the o9:e!t an$ ," ,o t othe A!t/ Th"#8 the $e!i#ion# elie$ ",on 9& the lea ne$ A$$itional Soli!ito Gene al in Union o2 ndia 0/ Cynamide ndia Ltd"K 3ra' ce * .i$ Mi$$s 0/ Union o2 ndia8 #hree Meena4shi Mi$$s Ltd" 0/ Union o2 ndia an$ 3anipat Coop" #u'ar Mi$$s 0/ Union o2 ndia (ill ha0e no a,,li!ation/H

E4/

The i##"e 9e-o e "# i# <"ite $i--e ent an$8 in o" 0ie(8 the

:"$1ment o- thi# Co" t in Ran9ax& Laboratories1 $oe# not a,,l& to the , e#ent !ont o0e #& -o mo e than one ea#on/ Fi #t8 in Ranbaxy

Laboratories18 the Co" t (a# !on!e ne$ (ith the exem,tion noti-i!ation i##"e$ "n$e ,a a1 a,h 2@ o- the DPCO85BB@ (he ea# in the , e#ent matte #8 the i##"e !ent e# a o"n$ ,a a1 a,h# 5485E an$ 5B o- that DPCO/ Se!on$8 the noti-i!ation "n$e !on#i$e ation in Ranbaxy Laboratories1 (a# an exem,tion noti-i!ation an$ not a noti-i!ation -o -ixation o- , i!e/ Thi $8 the exem,tion noti-i!ation i# elata9le to the man"-a!t" e to the $ "1# (he ea# , i!e -ixation noti-i!ation i# elate$ to #ale o- $ "1?-o m"lation at a 1i0en , i!e/ E@/ The Delhi Hi1h Co" t in the im,"1ne$ o $e ha# elie$ ",on

5B3B !i !"la an$ -" the hel$ that 5B3B !i !"la (a# in the !ontext o,a a1 a,h 5B%5* o- DPCO85B3B8 (hi!h i# almo#t i$enti!al to ,a a1 a,h 5E%;* o- DPCO85BC3 an$8 the e-o e8 the !i !"la ex,lainin1 the ,o#ition in
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e#,e!t o- the DPCO85B3B (o"l$ !ontin"e to hol$ the -iel$ in e#,e!t o- the 0e & #ame , o0i#ion# in DPCO85BC3/ Ge a e "na9le to a!!e,t the 0ie( othe Delhi Hi1h Co" t -o the ea#on# (hi!h (e ha0e al ea$& $i#!"##e$ a9o0e/ Mo eo0e 8 the Delhi Hi1h Co" t ha# 1one mo e 9& , a!ti!al $i--i!"ltie# (hi!h a man"-a!t" e ma& #"--e an$ !om,letel& o0e loo'e$ the #!heme o- the DPCO (hi!h i# inten$e$ to 1i0e 9ene-it to the !on#"me othe e$"!e$ !" ent , i!e o- the -o m"lation/ It i# ,e tinent to noti!e that Delhi Hi1h Co" t $i#tin1"i#he$ the 0ie( o- the Ka nata'a Hi1h Co" t an$ o9#e 0e$ a# -ollo(#D FGe a1 ee (ith the #"9mi##ion# ma$e 9& M / Gane#h that the Ka nata'a Hi1h Co" t $e!i#ion $i$ not !on#i$e Fo m @ no it# e-e en!e to FE--e!ti0e )at!h No/H/ No $i$ the #ai$ $e!i#ion e-e to the Ci !"la o- 5B3B (hi!h (e ha0e al ea$& in$i!ate$ to 9e a,,li!a9le to the DPCO 5BC3 al#o/ Ge8 the e-o e8 $o not a1 ee (ith the 0ie( a$o,te$ 9& the Ka nata'a Hi1h Co" t/ In -a!t8 the S", eme Co" t $e!i#ion !ite$ 9& M / Gane#h !lea l& e!o1niAe# the , a!ti!al a#,e!t# o- , i!in1 in the !ontext o- time la1#/ On!e the ealit& o- time la1# in the , o!e## o- man"-a!t" e8 !lea an!e8 $i#t i9"tion an$ #ale i# e!o1ni#e$8 the im,o tan!e o- =E--e!ti0e )at!h No#/> a# mentione$ in Fo m @ !ome# to the -o e/ The E--e!ti0e )at!h No/ e, e#ent# the !"t6o-- -o the ne( , i!in1/ The #eiA" e memo (hi!h i# im,"1ne$ he ein elate# to )at!h No/ )T ;574 %-o ;77m1 ta9let#* (hi!h i# , io to the FE--e!ti0e )at!h No/ )T ;55@H/ The #ai$ #eiA" e (a#8 th"#8 in e#,e!t o- ta9let# (hi!h ha$ 9een man"-a!t" e$ , io to the Fe--e!ti0eH )at!h No/ )T ;55@ (hi!h8 (e ha0e ex,laine$ a9o0e8 i# to 9e ta'en a# the !"t6o-- ,oint in#o-a a# the ne( , i!e# a e !on!e ne$/H EE/ The a9o0e 0ie( o- the Delhi Hi1h Co" t i# -"n$amentall& The

-la(e$ an$ !lea l& ( on1 in li1ht o- o" -o e1oin1 $i#!"##ion/

Ka nata'a Hi1h Co" t ha# ta'en the !o e!t 0ie( an$ the #ame i# ",hel$/
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E3/

Ge8 a!!o $in1l&8 $i#mi## the a,,eal# , e-e e$ 9& the

man"-a!t" e ?$i#t i9"to an$ allo( the a,,eal# o- the Union o- In$ia/ The ,a tie# #hall 9ea thei o(n !o#t#/

//++++++++J/ %R/M/ Lo$ha*

Ne( Delhi8 De!em9e 7B8 275;

+/ +++++++//J/ %K" ian Jo#e,h*

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