Manufacture of Excisable Goods (Drugs) not Taxable under Business Auxiliary Service Tax

Pharmanza India Pvt Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad) Introduction: The Central Excise and Service Tax Appellate Tribunal (CESTAT) in Ahmedabad recently delivered an order in the case of Pharmanza India Pvt Ltd vs C.C.E. & S.T. The decision clarifies that the manufacture of excisable goods, specifically drugs, is not taxable under business auxiliary service. The ruling can have significant implications for pharmaceutical companies involved in the manufacture of drugs under loan licensing arrangements. Background: Pharmanza India Pvt Ltd engaged in the manufacturing of drugs lik...