TMI Blog2014 (11) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... ual manufacturer and not by anyone else. The respondent, since not undertaking any manufacturing activity nor they discharging the excise duty liability cannot be entitled to take Cenvat Credit merely on the basis that invoices of input service is in their name and payment of service invoices made by them. As regards the loan licence concept it is for the purpose of Drug Act. However, as regards the concept of manufacture, availment of Cenvat Credit, discharging of excise duty liability there is no separate provision in respect of pharmaceutical goods manufactured on loan licence basis by some other manufacturer. As per Central Excise provision irrespective of ownership of the goods, the person who undertakes the manufacturing of the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for imposition of penalty under Section 11AC of the Central Excise Act, 1944 read with Rule 15 of the Cenvat Credit Rules. The adjudicating authority dropped the demand on the ground that there is no dispute that the goods are being manufactured by the respondent on their loan license basis. The original authority contended that the Cenvat Credit Rules, 2004 does not define the word manufacturer. However, Rule 2 (t) of the said Rules states that words and expressions used in those Rules and not defined but defined in Excise Act or the Finance Act shall have the same meanings respectively assigned to them in those acts. He referred on the new definition of manufacture in terms of 2(f) of Central Excise Act according to which it has been mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers discharged the excise duty and the respondent has neither manufactured nor discharged the excise duty they are not entitled for the Cenvat Credit. The job workers in fact have carried out the entire manufacturing process in their factory and it is the job workers who is availing the Cenvat Credit in respect of other inputs and input services. Therefore, it is his submission that the credit in respect of GTA and Sales Promotion service which is relatable to the goods manufactured by the job-worker cannot be availed by the respondent. In support he relied upon the following case laws: i) Ujagar Prints Vs. UOI 1989 (39) ELT 493 (SC) ii) Remidex Pharma Lt. 2007 (207) ELT A-183 (SC) iii) Cosme Remedies Ltd. 2010 (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x is done by the respondent. The respondent had the shift and carried out the manufacture under their supervision and the material was also supplied by them. The packing and labels on the manufactured goods indicated that the respondent is the manufacturer. He also given findings on the admissibility of the input services by referring the judgement of Coco Cola India Pvt. Ltd. Vs. CCE - 2009 (242) ELT 168 (Bom). The undisputed fact in this case is the respondent is not the actual manufacturer, the excisable goods is manufactured by M/s. Elvina pharmaceuticals and M/s. Simchem Pvt. Ltd. even though on behalf of the respondent. The input services in question is undisputedly related to the goods manufactured by the said two units. In terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harging the excise duty liability cannot be entitled to take Cenvat Credit merely on the basis that invoices of input service is in their name and payment of service invoices made by them. As regards the loan licence concept it is for the purpose of Drug Act. However, as regards the concept of manufacture, availment of Cenvat Credit, discharging of excise duty liability there is no separate provision in respect of pharmaceutical goods manufactured on loan licence basis by some other manufacturer. As per Central Excise provision irrespective of ownership of the goods, the person who undertakes the manufacturing of the goods shall only be considered as manufacturer. Therefore, the respondent by any stretch of imagination is not the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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