CESTAT grants exemption to Sun Pharmaceuticals on ‘Danazol’ from excise duty

Sun Pharmaceuticals Industries Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)

Introduction: The recent order from the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Chennai in the case of Sun Pharmaceuticals Industries Ltd. vs. Commissioner of GST & Central Excise has brought significant relief to the pharmaceutical giant. The appeal contested the Commissioner’s order, and CESTAT Chennai ruled in favor of Sun Pharma regarding the product ‘Danazol.’

1. Background of the Case:

• Sun Pharmaceuticals had been clearing the product ‘Danazol’ without paying duty, claiming exemption under Sl. No. 47A of Notification No. 4/2006-CE dated 1.3.2006. The dispute arose when the department contested that ‘Danazol’ should be classified under Sl. No. 47B, subject to certain conditions.

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