Case Law Details
Syncom Formulations (I) Ltd. Vs Commissioner (CESTAT Delhi)
I find that admittedly, the appellant have used the disputed inputs for fabrication of clean room, which is essential for manufacture of their dutiable goods, as such clean room is necessary for maintaining proper temperature and hygiene as well as keeping the RH factor in control, and without it manufacture of dutiable medicines is not possible. Further, I find that under Rule 2(k) of CCR, inputs means, ‘All goods used in the factory of the manufacturer of final products’. Accordingly, I hold that the appellant is entitled to cenvat credit on the items in dispute as inputs.
FULL TEXT OF THE CESTAT DELHI ORDER
Heard the parties and perused the records.
2. The appellant is engaged in the manufacture of P.P. medicaments (pharmaceuticals) falling under Chapter Heading No.3004 of CETA. During the period November, 2015 to Jan., 2016, the appellant purchased corrugated profile sheets, prefabricated modular – cealing panel/wall panel/PVC conduits/wall to ceiling coving/wall to wall coving/single doors/double doors/locks etc., and these were used for creating „Clean Room‟. Clean room is required for maintaining temperature control and ‘RH’ control, which is essential for manufacture of pharmaceutical products. Moreover, clear room panel is easily cleanable and essential for maintaining the quality of medicines produced.
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