The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has remanded a Rs. 3.90 crore excise demand against Sun Pharmaceutical Industries Ltd. regarding sales from an Export Oriented Unit (EOU) to a Domestic Tariff Area (DTA). The tribunal has directed the authorities to recalculate the deemed exports and the corresponding excise duty liability. <\/p>\n
The dispute arose from the company’s sales from its EOU to its DTA unit, which were treated as deemed exports under the Export and Import Policy. The excise authorities demanded duty on these sales, claiming that they were not genuine exports. Sun Pharma argued that the sales were eligible for exemption under the exemption notification, as they were deemed exports.<\/p>\n
The CESTAT observed that the excise authorities had not properly verified the deemed export benefits claimed by the company. The tribunal noted that the authorities had not considered the export proceeds realized by the company and had not verified the consumption of the goods in the DTA. <\/p>\n
The CESTAT held that the excise authorities’ demand was not sustainable and remanded the matter to the original authority to recalculate the deemed exports and the corresponding excise duty liability. The tribunal directed the authorities to consider the export proceeds realized by the company and to verify the consumption of the goods in the DTA.<\/p>\n
The CESTAT’s order is significant, as it clarifies the treatment of sales from an EOU to a DTA under the excise law. The order also highlights the importance of proper verification and calculation of deemed export benefits. The remand order will allow the authorities to re-examine the company’s claims and calculate the correct excise duty liability.<\/p>\n
The case emphasizes the need for exporters to maintain accurate records and documentation to support their claims for deemed export benefits. It also underscores the importance of proper verification and calculation by the excise authorities to ensure that the correct excise duty liability is determined. The CESTAT’s order will provide guidance to other exporters and excise authorities in similar cases, ensuring consistency and clarity in the application of the excise law.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has remanded a Rs. 3.90 crore excise demand against Sun Pharmaceutical Industries Ltd. regarding sales from an Export Oriented Unit (EOU) to a Domestic Tariff Area (DTA). The tribunal has directed the authorities to recalculate the deemed exports and the corresponding excise duty liability. The dispute […]<\/p>\n","protected":false},"author":1,"featured_media":88143,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2,16],"tags":[],"class_list":["post-89739","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pharma","category-sun-pharma"],"jetpack_featured_media_url":"https:\/\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":89710,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2025\/12\/27\/the-us-fda-has-issued-a-recall-for-an-antifungal-shampoo-manufactured-by-sun-pharma\/","url_meta":{"origin":89739,"position":0},"title":"The US FDA has issued a recall for an antifungal shampoo manufactured by Sun Pharma.","author":"Team Small News","date":"December 27, 2025","format":false,"excerpt":"The US Food and Drug Administration (USFDA) has announced a recall of over 17,000 units of antifungal shampoo, Ciclopirox Shampoo, due to manufacturing issues. The recall was initiated by Taro Pharmaceutical Industries, the US arm of Sun Pharma, on December 9. The shampoo is used to treat seborrheic dermatitis, a\u2026","rel":"","context":"In "Pharma"","block_context":{"text":"Pharma","link":"https:\/\/smallnews.in\/pharmaceuticals\/category\/pharma\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":89809,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2026\/01\/16\/indian-pharma-q3-preview-strong-domestic-formulations-segment-to-offset-us-pricing-challenges-scanx-trade\/","url_meta":{"origin":89739,"position":1},"title":"Indian Pharma Q3 Preview: Strong Domestic Formulations Segment to Offset US Pricing Challenges – scanx.trade","author":"Team Small News","date":"January 16, 2026","format":false,"excerpt":"The Indian pharmaceutical industry is expected to experience a mixed bag in the third quarter of the year, with domestic formulations likely to counterbalance the pressure from pricing in the US market. The sector's growth is anticipated to be driven by a strong performance in the domestic market, which is\u2026","rel":"","context":"In "Dr Reddy's"","block_context":{"text":"Dr Reddy's","link":"https:\/\/smallnews.in\/pharmaceuticals\/category\/dr-reddys\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/04\/Dr.Reddys_logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/04\/Dr.Reddys_logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/04\/Dr.Reddys_logo.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":89821,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2026\/01\/19\/sun-pharma-sets-sights-on-10-billion-organon-takeover-to-bolster-us-presence\/","url_meta":{"origin":89739,"position":2},"title":"Sun Pharma Sets Sights on $10 Billion Organon Takeover to Bolster US Presence","author":"Team Small News","date":"January 19, 2026","format":false,"excerpt":"Sun Pharmaceutical Industries Ltd., India's largest drug manufacturer, is considering a monumental acquisition of Organon, a US-based company specializing in women's health and biosimilars. The potential deal, valued at $10 billion, is being led by the company's founder, Dilip Shanghvi. If successful, this acquisition would be a significant milestone for\u2026","rel":"","context":"In "Pharma"","block_context":{"text":"Pharma","link":"https:\/\/smallnews.in\/pharmaceuticals\/category\/pharma\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":89791,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2026\/01\/12\/aurobindo-pharma-acquires-khandelwal-labs-non-cancer-portfolio-for-%e2%82%b9325-crore\/","url_meta":{"origin":89739,"position":3},"title":"Aurobindo Pharma Acquires Khandelwal Labs’ Non-Cancer Portfolio for \u20b9325 Crore.","author":"Team Small News","date":"January 12, 2026","format":false,"excerpt":"Aurobindo Pharma, a leading Indian pharmaceutical company, has acquired the non-oncology business of Khandelwal Laboratories for \u20b9325 crore. The acquisition is a strategic move by Aurobindo Pharma to expand its product portfolio and strengthen its position in the domestic market. Khandelwal Laboratories is a Mumbai-based pharmaceutical company that operates in\u2026","rel":"","context":"In "Aurobindo Pharma"","block_context":{"text":"Aurobindo Pharma","link":"https:\/\/smallnews.in\/pharmaceuticals\/category\/aurobindo-pharma\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":89871,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2026\/01\/28\/sun-pharma-receives-green-light-for-obesity-treatment-injection-similar-to-wegovy\/","url_meta":{"origin":89739,"position":4},"title":"Sun Pharma receives green light for obesity treatment injection similar to Wegovy.","author":"Team Small News","date":"January 28, 2026","format":false,"excerpt":"Sun Pharmaceutical Industries has received approval for a weight loss injection similar to Novo Nordisk's Wegovy. The new treatment, called \"SUN-144\", is a once-weekly injection that helps with weight management in adults with obesity or overweight with at least one weight-related condition. This approval marks a significant milestone for Sun\u2026","rel":"","context":"In "Pharma"","block_context":{"text":"Pharma","link":"https:\/\/smallnews.in\/pharmaceuticals\/category\/pharma\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/sun-pharma-logo.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":89806,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2026\/01\/15\/us-sales-of-revlimid-decline-offset-by-strong-domestic-market-growth\/","url_meta":{"origin":89739,"position":5},"title":"US Sales of Revlimid Decline, Offset by Strong Domestic Market Growth","author":"Team Small News","date":"January 15, 2026","format":false,"excerpt":"The Indian pharmaceutical industry is bracing for a challenging earnings season in Q3, with expectations of muted margins due to the loss of patent exclusivity for the blockbuster blood cancer drug Revlimid in the US. Revlimid, which has generated over $100 billion in global sales, has been a significant revenue\u2026","rel":"","context":"In "Cipla"","block_context":{"text":"Cipla","link":"https:\/\/smallnews.in\/pharmaceuticals\/category\/cipla\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/smallnews.in\/pharmaceuticals\/wp-json\/wp\/v2\/posts\/89739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smallnews.in\/pharmaceuticals\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smallnews.in\/pharmaceuticals\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smallnews.in\/pharmaceuticals\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/smallnews.in\/pharmaceuticals\/wp-json\/wp\/v2\/comments?post=89739"}],"version-history":[{"count":0,"href":"https:\/\/smallnews.in\/pharmaceuticals\/wp-json\/wp\/v2\/posts\/89739\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smallnews.in\/pharmaceuticals\/wp-json\/wp\/v2\/media\/88143"}],"wp:attachment":[{"href":"https:\/\/smallnews.in\/pharmaceuticals\/wp-json\/wp\/v2\/media?parent=89739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallnews.in\/pharmaceuticals\/wp-json\/wp\/v2\/categories?post=89739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallnews.in\/pharmaceuticals\/wp-json\/wp\/v2\/tags?post=89739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}