HIGH COURT OF GUJARAT
Commissioner of Central Excise, Ahmedabad-II
Versus
Cadila Healthcare Ltd.
TAX APPEAL NOs. 353 OF 2010 & 204 OF 2011
Date of Pronouncement – 07.11.2012
JUDGMENT
Harsha Devani, J.
Both these appeals at the instance of the revenue are directed against the common order dated 3.8.2009 passed by the Customs Excise & Service Tax Appellate Tribunal, West Zone Bench, Ahmedabad (hereinafter referred to as “the Tribunal”) in Central Excise Appeal No. E/775 and E/1355 of 2008 by proposing the following question:
“Whether the CESTAT was right in considering the services namely Technical Testing and Analysis Service, Technical Testing and Certification Service, Business Auxiliary Service (Service rendered by the Commission agent), Service rendered by clearing and Forwarding Agent, Courier Service, Commercial and Industrial Construction Service, Maintenance or Repair service, Interior Decorator Service, Management Consultancy Service, availed by the assessee, as eligible services for availing input service credit as defined under Rule 2(l) of the CCR, 2004?”
2. The respondent-assessee is engaged in the manufacture of P. & P. medicines classifiable under Chapter 30 of the First Schedule of the Central Excise Tariff Act, 1985 and is also availing CENVAT facility as provided under the Central Credit Rules, 2004 (hereinafter referred to as “the Rules”). During the course of Audit by the Head Quarters Audit, it was noticed that the assessee had availed CENVAT credit in respect of services, which according to the department were not eligible as input services as defined under rule 2(l) of the Rules. Accordingly, two show cause notices came to be issued to the assessee. Show cause notice dated 8.6.07 came to be issued in respect of the following input services:
(2) Technical Testing and Analysis – Rs. 1,23,09,894/-
(3) Commission paid to the foreign agents – Rs. 39,45,791/-
(4) Courier service – Rs. 36,54,709/-
(5) Clearing and Forwarding Service – Rs. 6,87,098/-
