Custom
TRT-2025-
Cestat Mumbai
Date:-13-06-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 13 June 2023
Parties: Khandelwal Laboratories P. Ltd. Vs Commissioner of CGST & CE, Mumbai III
Facts –
- The Appellant, Khandelwal Laboratories P. Ltd., during the period 1995-96 engaged in manufacture of anti-cancer drugs on behalf of M/s. German Remedies and the name of the said M/s. German Remedies was appearing on the Bills of Entry of the imported raw material/input required for manufacturing the aforesaid drug.
- During the period in issue the appellant availed the Modvat Credit which was denied to them by the department on the ground that the appellants have taken credit on the basis of the Bills of entry which were not in their name but in the name of M/s. German Remedies and therefore they are not eligible to take the credit.
Issue –
- Whether the appellant is correctly availed the credit?
Order –
- The Tribunal observed that Hon’ble High Court in the matter of Marmagoa Steel Ltd held that Rule 57G ibid does not require that the bill of entry should be in the name of the person claiming credit of duty and what is required to be established for taking credit is that the goods used as inputs are duty paid and the credit of duty paid on the said goods has not been taken.
- Further, from the bills of entry and endorsement therein alongwith the entries in the RG23A and also the gate register and the tribunal is of the view that goods covered with the bills of entry in issue have been received by the appellant and the same were consumed in their manufacturing premises.
- Therefore the Appellant is eligible to avail the Modvat Credit and has rightly availed the same. The appeal is allowed.
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