Cadila Healthcare Ltd Vs C.C.E (CESTAT Ahmedabad)
The CESTAT, Ahmedabad in the matter of M/s. CADILA HEALTHCARE LTD v C.C.E. & S.T.-VADODARA-I [Excise Appeal No. 10100 of 2020 dated June 24, 2022] has held that assessee is not liable for payment of either excise duty or cenvat credit under Rule 6(3) of the Cenvat Credit Rules, 2004 (“the Cenvat Credit Rules”) on empty packaging material of cenvatable input.
Facts:
This appeal has been filed by M/s. CADILA HEALTHCARE LTD (“the Appellant”) against the order-in-Appeal (“the impugned order”) passed by the Commissioner (Appeals), Central Excise, Customs and Service Tax, confirming the demand on clearance of the empty packaging drums by the Appellant, on the grounds of being non-excisable goods and demanding reversal in terms of rule 6(3) of the Cenvat Credit Rules.
The Appellant contented that empty packaging drums of cenvatable input is to be considered as non-excisable goods as they are not generated during the process of manufacturing and is cleared after emptying the inputs, therefore, the same is not liable for payment under Rule 6(3) of the Cenvat Credit Rules.
Issue:
- Whether the Appellant is required to pay an amount in terms of Rule 6(3) of the Cenvat Credit Rules on empty packaging drums of cenvatable input considering the same as non-excisable goods?
Held:
The CESTAT, Ahmedabad in [Excise Appeal No. 10100 of 2020 dated June 24, 2022] held as follows:
