CESTAT sets aside Service Tax Demand against CIPLA on Manufacturing & Exporting of Pharmaceutical Products

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) set aside a service tax demand against Cipla Limited, a pharmaceutical company. The demand was related to the manufacturing and exporting of pharmaceutical products. The tribunal found that the service tax demand was issued beyond the permissible extended period of limitation. The ruling emphasized that Cipla had adhered to the proper filing of statutory returns, including the ST-3 returns, which showed their turnover for transactions, including exports to Nepal. Consequently, CESTAT concluded that the extended period for raising the demand was not justifiable, leading to the demand being set aside.