CENVAT credit of Excise Duty Allowable to Pharmaceutical industry involved in Manufacturing of Drugs: CESTAT [Read Order]
CENVAT credit – Excise Duty – Pharmaceutical industry – Manufacturing of Drugs-CESTAT-TAXSVAN
CENVAT credit – Excise Duty – Pharmaceutical industry – Manufacturing of Drugs-CESTAT-TAXSVAN
The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the CENVAT credit of Excise duty is allowable to the pharmaceuticals industry involved in the manufacturing of drugs.
Ind-Swift Laboratories, the respondent-assessee took central excise registration declaring to manufacture medicines and availed CENVAT credit on capital goods, inputs and input services and obtained registration for payment of Service Tax on Scientific and Technical Consultancy Services on 02.02.2007.
The revenue appealed against the order passed by the Commissioner (Appeals) for rejecting the recovery of the availed CENVAT credit of Rs. 74,71,109/-.
Surjit Bhadu, the counsel for the assessee contended that the revenue had not appreciated the facts and had not given any reason or evidence to say that the present unit was not designed for manufacturing purposes but only for Research and Development of the product.
Aneesh Dewan, the counsel for the department contended that the impugned order was not sustainable in law as the same had been passed without properly appreciating the facts and the law. He further submits that the observation of the Commissioner was that if on verification the information provided by the assessee at the time of making application for registration was found to be incorrect, then the Registration should have been canceled.
The Bench observed that the revenue had failed to bring any evidence on record to prove that the assessee was not capable of carrying out the manufacturing activity and that the CENVAT credit on inputs and capital goods had been rightly availed by the assessee.
The two-member bench comprising S S Garg (Judicial) and Anjani Kumar (Technical) held that the assessee was rightly availed of the CENVAT credit while dismissing the appeal filed by the revenue.
To Read the full text of the Order CLICK HERE
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