Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2024 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 669 - AT - Central ExciseWrongful availment of inadmissible credit - medicaments manufactured by the appellant cleared on payment of duty without availing the benefit of Notification No. 4/2006-CE dated 01.03.2006 - HELD THAT:- Going through the said Notification No. 4/2006-CE dated 01.03.2006 and 12/2012-CE dated 17.03.2012, similarly worded, we find that to avail the benefits of said Notifications, it is necessary to fulfill the conditions viz. (i) “formulation” means medicaments processed out of or containing one or more bulk drugs, with or without the use of any pharmaceuticals aids (such as diluent, disintegrating agents, moistening agent, lubricant, buffering agent, stabilizer or preserver) which are therapeutically inert and do not interfere with therapeutical or prophylactic activity of the drugs, for internal or external use, or in the diagnosis, treatment, mitigation or prevention of disease in human beings or animals; and (ii) it shall not include any substance to which the provisions of Drugs and Cosmetics Act, 1940 do not apply. Therefore, the finding of the ld. Commissioner that the said exemption Notification is absolute one, is incorrect. The appellant during the relevant period discharged appropriate duty on the formulations manufactured and cleared from their factory. It is a settled position of law that once the duty has been paid considering the process undertaken resulting into manufacture and attracting duty, Cenvat Credit cannot be denied on inputs/input services if subsequently it is found to be not amounting to manufactured and hence, not excisable. There are no merit in the impugned order - appeal allowed.
|