2003 (10) TMI 591 - AT - Central Excise

Summary

Issues:
Claim of input duty credit for syringes and needles supplied with medicaments.

Analysis:
The issue in this case revolves around the claim of input duty credit for syringes and needles supplied along with medicaments. The lower authorities rejected the claim on the basis that these items are not considered inputs used in the manufacture of medicaments. The appellants argue that the syringes and needles are part of a set along with the medicaments, and the value of the set includes these items for which duty is paid. They rely on a previous decision of the Tribunal in the case of Heal Well Pharmaceuticals to support their claim. On the other hand, the Department supports the lower authorities' decision and cites a different case law of Jagsonpal Pharmaceuticals Ltd.

In the case of Jagsonpal Pharmaceuticals Ltd., the Tribunal had disallowed input duty credit for syringes and needles by considering them as packing materials, which are not classified as inputs. However, in the present case, the appellants do not claim syringes and needles to be packing materials. They argue that these items are sold as a set along with the medicaments, and the duty is paid on the total value of the set. The Department does not classify syringes and needles separately for charging duty. As the entire set is treated as one item, and the value of syringes and needles is included in the set's value, the Tribunal applies the ratio of the Heal Well Pharmaceuticals case and allows the input duty credit for syringes and needles forming a part of the set.

In conclusion, the Tribunal sets aside the impugned orders and allows the appeal of the appellants, granting them the input duty credit for syringes and needles supplied along with medicaments.