COMMR. OF C. EX. Vs. INTAS PHARMACEUTICALS LTD

JUDGEMENT

(1.) The department is in appeal against order dated 4-12-2009 passed by the Customs, Excise & Service Tax Appellate Tribunal, West Zonal Bench, Ahmedabad (hereinafter referred to as "the Tribunal") and has proposed the following question:

(2.) During the course of audit, it was observed that the assessee had availed of input service credit in respect of the above services which according to the department were not in or in relation to manufacture of products manufactured by the assessee. Accordingly, three show cause notices came to be issued to the assessee in respect of the above mentioned input services (i) show cause notice dated 8-4-2008, (ii) show cause notice dated 1-4-2008 and (iii) show cause notice dated 5-8-2008.

(3.) The aforesaid three show cause notices came to be adjudicated by the Additional Commissioner, Central Excise, Ahmedabad-II vide Order-in-Original, dated 25-11-2008 and 31-7-2008 respectively, whereby the demand came to be confirmed in respect of all the three show cause notices along with interest and penalty. The assessee carried the matter in appeal before the Commissioner (Appeals) who by an order dated 31-3-2009 confirmed the duty demand but reduced the penalty amount in respect of two of the show cause notices. The assessee carried the matter in further appeal before the Tribunal which came to be allowed by the impugned order dated 3-8-2009.