SHASUN CHEMICALS AND DRUGS LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) The appellants are manufacturing pharmaceutical ingredients as well as formulations. The appellants have also sold DEPB scrips not utilized by them through a commission agent. The appellants are seeking credit of service tax paid on the services received from the commission agent for selling DEPB scrips against excise duty payable on pharmaceutical ingredients and formulations manufactured by them. The credit of service tax has been denied by the authorities below on the ground that the service relating to sale of DEPB scrips cannot be considered as an input service in or in relation to manufacture of the pharmaceutical goods.

(3.) SHRI V. Ravindran, Ld. Advocate argues that the service relating to sale of DEPB scrips is an input service as the money received from such sale is utilized for buying raw materials for the manufacture of the finished goods. He supports his claim by relying on the following four case law: