Case Law Details
ALKEM Laboratories Limited Vs. Commissioner of Central Excise & ST, Daman (CESTAT Ahmedabad)
The assessee is entitled to avail Cenvat Credit in respect of inputs and packaging material used in manufacturing of trial batches of medicament.
The department denied cenvat credit in respect of inputs and packing material used in the manufacture of trial/ exhibit batch of medicament on the ground that the same are not used in the manufacture of excisable goods on which central excise duty is paid. The Tribunal observed that the trial/ exhibit batch of medicament is used to comply with the Drugs and Cosmetics Act, which was subsequently destroyed. On the basis of such tests, the marketability of the product is ascertained.
Accordingly, the Tribunal held that the process of testing of the medicaments is an integral part which is used in relation to manufacturer of the final product and the appellant is eligible to avail cenvat credit of inputs and packaging materials used in manufacturing such trial/ exhibit batches. The Tribunal set aside the impugned order and allowed the appeal. It may assist similarly placed litigants.
FULL TEXT OF THE JUDGMENT/ORDER OF THE CESTAT, AHEMDABAD
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