2021 (10) TMI 483

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.... under Cenvat Credit Rules, 2004; and ii) Whether the appellant have rightly taken cenvat credit on the installation of 'special doors' for manufacture of drugs under 'good manufacturing practices'. 2. Brief facts of the case are that the appellant is engaged in the manufacture of Pharmaceutical Products (API), (Active Pharmaceutical Ingredients). Appellant is availing credit of input, capital goods and input service and clearing their finished goods on payment of duty. 3. Show cause notice dated 24.01.2019 was issued invoking extended period of limitation for the period 2013-14 to 2016-17 on the following five issues. (a) Less payment of duty on goods sold to sister concern by following the provision of Rule 8 of th....

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....ard to upholding of the demand of cenvat credit with regard to 'doors and windows' and 'outward freight'. 7. Learned Counsel Shri Rajiv Srivastava appearing for the appellant urges the following grounds/ submissions, that these are special doors/ windows, which are required to keep the manufacturing premises, hall/ room dust free, as the appellant is manufacturing active drugs / pharmaceutical ingredients for human consumption. Keeping the premises dust free, is required to ensure the good quality of the finished goods, and essential by way of Good Manufacturing Practices (GMP). 7.1. Learned Counsel further relies on the Board Circular No. 943/4/2011-CX dated 29.04.2011. He further relies on the following ruling in the case of:- ....

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....s, read with Board Circular dated 29.04.2011 and also in view of the precedent rulings referred hereinabove. Further, in the show cause notice, it is admitted fact that the availment of credit was reflected in the record and books of accounts maintained by the appellant in the ordinary course of business. The appellant have filed ER-1 return regularly. The appellants' unit come under LTU (large taxpayer unit) and are paying excise duty of more than several crores annually. Further the issue involved is wholly interpretational in nature and there is no contumacious conduct or suppression of facts or fraud on the part of the appellant. Thus, the show cause notice and the impugned order is fit to be set aside on this ground alone. Admittedly, ....