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TMI Blog2015 (12) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... er the Commissioner, Customs, Central Excise and Service Tax, Hyderabad-II Commissionerate, the Commissioner has adjudicated upon two show cause notices issued on 30th September, 2010 and 21th October 2011 covering the period from April, 2005 to March, 2011. In the adjudication process cenvat credit of Rs. 9,72,22,192/- has been denied and demanded with interest and penalty equivalent to the servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service credit cannot be taken. 4. The Learned Counsel submitted the following grounds of appeal: i) R & D activity is an essential and integral part of the manufacture of finished products in the Pharma Industry without which no pharmaceutical products could be manufactured and marketed. ii) Further such R & D cost is factored in arriving at the Sale value of the Finished Goods which are eit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that the product is not manufactured at Daman, it does not disentitle appellant to the Credit. In that case, pre-deposit was waived and stay was granted. v) Tribunal in the case of Sudharshan Chemicals Ltd., Vs. CCEx., Pune III (2010 (262) ELT 974 (Tri.Mum.) held that, without testing in R&D section, final product could not be produced and hence it was integral part of manufacturing process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he R & D unit. There is no dispute that R & D units belong to the same manufacturer and in the excise registration and service tax registration for the units, the manufacturer is one and the same. In the case of M/s Cadila Healthcare Ltd., [(2013-TIOL-12-HC-AHM-ST)] even the credit relating to R & D work in respect of product which was ultimately not manufactured at all was held to be admissible. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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