CADILA HEALTHCARE LIMITED Vs. COMMISSIONER, C. EXCISE

JUDGEMENT

(1.) APPELLANTS are engaged in the manufacture of medicaments falling under Chapter 30 of the first schedule of the Central Excise Tariff Act, 1985. The appellants had availed cenvat credit of service tax paid on Technical and Analysis Services, Commission paid to the foreign agents, Courier services and C & F Agent services. The Revenue has taken a stand that cenvat credit of Rs. 2,06,32,908/ - availed as cenvat credit of service tax paid on the above services is not admissible and impugned order has been passed, whereby the cenvat credit on service tax has been ordered to be recovered with interest. Penalty of Rs. 10,000/ - has also been imposed on the appellants.

(2.) SHRI J.C. Patel. Learned Advocate on behalf of the appellants submitted that input services has been defined in Rule 2(1) of Cenvat Credit Rules 2004 and he specifically drew our attention to following portion in the definition "and includes services, used in relation to setting up, modernization, renovation or repairs of a factory premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal".

(3.) LEARNED SDR, on the other hand submits that the Technical Testing and Analysis services was rendered in respect of a product which was produced on the trial basis and has not been manufactured and sold at all. Therefore, the credit taken in respect of this product can be used only in relation to the manufacture of that product and therefore credit is clearly not admissible. As regards other services, he submits that the same have to be considered in the light of the Larger Bench decision of the Tribunal.