Intas Pharmaceuticals Limited Vs C.C.E.-Ahmedabad-ii (CESTAT Ahmedabad)
Introduction: The recent order from the CESTAT Ahmedabad in the case of Intas Pharmaceuticals Limited vs. C.C.E.-Ahmedabad-II addresses the eligibility of CENVAT credit under Rule 6(3A) of the Cenvat Credit Rules, 2004. The appellant, engaged in the manufacture of medicaments, had reversed CENVAT credit on a monthly basis under Rule 6(3A) but faced issues related to the quantification of reversible amounts.
1. Background and Reversal of Credit:
- The appellant, following Rule 6(3A), reversed CENVAT credit monthly and claimed re-credit based on the final determination.
- A show cause notice was issued, alleging non-inclusion of certain credit amounts during quantification, leading to a proposed demand.
2. Show Cause Notice Allegations:
- The notice contended non-inclusion of credit amounting to Rs. 1,58,66,384/- related to services specified in Rule 6(5) availed in the year 2011-12.
- Another allegation was the wrongful availing of Rs. 3,52,69,062/- in October and December 2012, pertaining to the financial year 2011-12.
3. Adjudication and Decision:
- The Adjudicating Authority upheld the demand related to the non-inclusion of Rule 6(5) credit, rejecting the contention that services were received before the rule’s omission on 01.04.2011.
- While acknowledging the appellant’s eligibility for excluding the credit pertaining to October and December 2012, a demand was confirmed for the Rule 6(5) credit.
- Interest and a penalty under Rule 15 of the Cenvat Credit Rules, 2004, were also imposed.
4. Appellant’s Submissions and CESTAT’s Observations:
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