M/s PANACEA BIOTEC LTD Vs THE COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, LUDHIANA: 01.10.2019 - Central Excise - SCN invoking provisions of Rule 6(3) of the CCR, 2004 seeking reversal of Cenvat credit equivalent to 10% of the total turnover of exempted goods namely vaccine cleared by appellant from their factory premises – appellant stand that M/s Panheber Biotec Pvt. Ltd. is a separate entity who was engaged in manufacture of the vaccine – HELD - the appellant have not been able to advance any evidence to controvert the finding of the Department that vaccine was being manufactured by the appellant on the strength of vaccine manufacturing license issued to M/s Panera Biotech - It is a matter of the common sense that any independent manufacture need to have a independent power connection of electricity or sub-meter for supply of electricity etc. - the appellant have not been able to produce any evidence to prove that M/s Panheber / Panera Biotec Pvt. Ltd. existed on their premises independently and they had their own independent electricity connection or sub-lease connection from the main unit of the appellant - no goods can be manufactured without utilization of electricity / power and from the entire record of the appeal and submissions made by the appellant, we do not find any iota of evidence to indicate that M/s Panheber/Panera Biotec Pvt. Ltd. had independently utilized power for manufacture of vaccine - As the appellant is professionally managed manufacturing plant and it is beyond our comprehension that the goods manufactured by some other plant which is a separate legal entity will find a place in the records of the appellant’s statutory books or stock records. These evidences cannot be rejected lightly and the Department has rightly raised the issue of mis-utilization of the Cenvat credit – no infirmity in the impugned order-in-original, the same is upheld and the appeal is dismissed

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