CX - Material consumed in laboratories located in factory premises - no credit reversal: CESTAT
By TIOL News Service
MUMBAI, AUG 19, 2017: M/s. Sun Pharmaceuticals Industries Ltd. is in appeal against the confirmation of demand of CENVAT Credit in respect of material consumed in their laboratories located within the premises.
Interestingly, while the SCNhas been issued seeking reversal of CENVAT credit on material consumed in the laboratories, the impugned order confirmed the demand on the ground that material consumed appears to be higher in quantity and unlikely to have been consumed for R&D purpose .
The appellant relied on the decision in the case of Central Cables Ltd.- 2016-TIOL-1040-CESTAT-MUM to assert that no demand of reversal of CENVAT Credit can be made since the goods are not cleared from the factory premises.
The Bench agreed and allowed the appeal.
(See 2017-TIOL-2997-CESTAT-MUM )
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