2009 (7) TMI 1043 - AT - Central Excise

Summary

The appellate tribunal CESTAT AHMEDABAD, presided over by Ms. Archana Wadhwa, heard the case of appellants engaged in manufacturing P&P medicaments. The medicines became unfit for human consumption and were required to be destroyed, classified as waste pharmaceuticals under Heading 3006 92 00. The appellants reversed the Modvat credit of duty upon destruction of these medicines, but later filed a refund claim when the reversal was denied by authorities. The tribunal found that the credit of duty paid on inputs used in destroyed goods does not need to be reversed, citing a previous judgment in the case of M/s. Grasim Industries v. CCE, Indore. The tribunal also noted that a relevant sub-rule introduced in 2007 could not be applied retroactively to the period in question, August 2007. Consequently, the tribunal set aside the impugned order and allowed the appeals with consequential relief to the appellant. The judgment clarifies the treatment of duty credits on inputs used in destroyed goods and the application of relevant rules in such cases.