Dismissed

The Commissioner of Central Excise Thane -Ii v. M/S. Pharma Link Laboratories

Bombay HC21 Aug 2012CEXA/138/2010

Case brief

AI extract

What is this about?

The Bombay High Court dismissed the Commissioner's appeal against a CESTAT order declining reversal of input credit. The court held the notice did not address credit reversal and, more critically, the legal duty to reverse credit only arose after September 7, 2007, making the dispute non-applicable. Appeal dismissed.

What did the court decide?

Appeal dismissed with no order as to costs.

The Commissioner of Central Excise Thane -Ii Vs M/S… — GST and Indirect Tax | Bombay HC (2012)

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cexa138-10

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

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ORDINARY ORIGINAL CIVIL JURISDICTION

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CENTRAL EXCISE APPEAL NO.138 OF 2010

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The Commissioner of Central Excise

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..Appellant.

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V/s.

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M/s. Pharma Link Laboratories

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..Respondent.

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Mr. A.S. Rao with S.D. Bhosale for the appellant.

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Mr. V. Sridharan, senior Advocate for the respondent.

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CORAM : J.P. DEVADHAR AND R.D. DHANUKA, JJ. DATED : 21ST AUGUST, 2012

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P.C. :-

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Whether the CESTAT was justified in dismissing the appeal filed by the revenue and upholding the order in original, wherein the adjudicating authority while granting remission of duty in respect of inputs used in the final products which were destroyed in the floods on 26^th June, 2002 had not passed any order for reversal of the input credit, is the question raised in this appeal.

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sas

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Admittedly, the show cause notice issued to the petitioner related to the recovery of excise duty on the final products and not related to the reversal of the input credit and, therefore, no fault could be found with the Commissioner for not dealing with the issue relating to reversal of the input credit in the order in original.

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In any event, the question as to whether the input credit has to be reversed if the final products manufactured out of such inputs are destroyed has been considered by this Court in the case of Commissioner of C. Ex., Navi Mumbai V/s. Hindalco Industries Ltd. Reported in 2011 (272) E.L.T. 161 (Bom) wherein it is held that the question of reversal of the credit would arise only after the insertion of Rule 3(5C) in the Cenvat Credit Rules, 2004 with effect from 7^th September, 2007. In the present case, the dispute relates to the period prior to 7^th September, 2007 and hence no fault can be found with the decision of the Tribunal.

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Accordingly, we see no merit in the appeal and the same is hereby dismissed with no order as to costs.

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sas

The Commissioner of Central Excise Thane -Ii v. M/S. Pharma Link Laboratories

Case brief

What is this about?

What did the court decide?

The Commissioner of Central Excise Thane -Ii v. M/S. Pharma Link Laboratories

Case brief

What is this about?

What did the court decide?

What the court decided

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