CENVAT Credit Available on Input for Manufacture of Bulk Drugs: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that CENVAT credit is available for inputs used in the manufacture of bulk drugs. In this case, tax authorities had disallowed the credit on inputs that were not directly part of the final product. The tribunal clarified that such inputs contribute to the overall manufacturing process and are therefore eligible for credit. This decision provides relief to manufacturers and clarifies the applicability of CENVAT credit in the pharmaceutical industry.