Case Law Details
Panacea Biotec Ltd. Vs Commissioner of Central Excise And Service Tax (CESTAT Chandigarh)
Introduction: In a recent order, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Chandigarh ruled in favor of M/s Panacea Biotec Ltd., setting aside the excise duty demand of Rs. 1,65,92,802/- imposed on the clearance of Hemophilus Vaccine. The crucial ground for quashing the demand was the absence of concrete evidence establishing M/s Panacea Biotec Ltd. as the actual manufacturer of the vaccine.
Background: M/s Panacea Biotec Ltd., engaged in the production of PP Medicaments, had availed CENVAT credit on inputs, input services, and capital goods, clearing final products by paying the required duty. A CAG Audit raised concerns about the duty-free clearance of Hemophilus Vaccine, leading to a show-cause notice in 2012. Despite an initial confirmation of the demand in 2013, CESTAT, in 2015, remanded the case for re-evaluation. Subsequent proceedings in 2017 upheld the demand, prompting the appellants to file appeals.
Key Arguments and Findings:
Rule 6(3) of CCR, 2004 Challenge:
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