Appellant wins appeal on Cenvat credit refund for manufacturing final products.

CADILA HEALTHCARE LTD. Versus COMMISSIONER OF C. EX., VADODARA

CADILA HEALTHCARE LTD. Versus COMMISSIONER OF C. EX., VADODARA - 2014 (33) S.T.R. 295 (Tri. - Ahmd.) Issues:
Refund of Cenvat credit on input/input services for manufacturing final products.

Analysis:
The stay petition was filed for the waiver of pre-deposit of the refund amount allowed by the adjudicating authority but set aside by the first appellate authority upon appeal by the Revenue. The issue at hand pertains to the refund of Cenvat credit availed on input/input services used in manufacturing final products. The appellant argued that the first appellate authority based its decision on Notification No. 5/2006, contending that the input services were not used in providing output services. However, the appellant highlighted that this notification was retrospectively amended by Notification No. 7/2010, replacing 'used in' with 'used in or in relation to'. Additionally, the appellant referenced Bench Final Order No. A/1242/WZB/AHD/2011, dated 3-5-2011, to support their stance.

Upon hearing both sides, the Member (J) found that the issue was narrow enough to dispose of the appeal alongside the stay petition. It was noted that the issue revolved around the refund of Cenvat credit of Service Tax on input/input services for manufacturing final products. The Member (J) emphasized that the issue was no longer res integra due to the amendment made to Notification No. 5/2006 by the Finance Act, 2010, Clause 74. Furthermore, the judgment of the Bench in the case of Naval Overseas Pvt. Limited was deemed relevant and supportive of the appellant's position. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief deemed appropriate.