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2012 (11) TMI 74 - AT - Central ExciseCenvat credit –manufacture of Telecommunication equipment – alleged that use of inputs in R & D did not result in manufacture of dutiable final products and therefore they were not eligible for Cenvat Credit on such inputs used in R & D – Held that:- Noticee has informed that at present they do not have any R & D section as the same was stopped in 1997-98, as they are reported to have suffered heavy losses - noticee for the present is not doing any R & D work not they have maintained any record of R & D work done by them in the past. The noticee can correlate the inputs upto the issue stage but have no system to identify whether inputs in question have been used in the R & D work or manufacture of goods cleared on payment of duty - revenue is presuming that such inputs did not result in manufacture of final products. Inputs used in trial productions or destructive testing or trial production also are eligible for Cenvat credit. Revenue has not made out any case that the inputs were cleared without payment of duty or they were destroyed in the process of so called R & D; - appellants are eligible for Cenvat credit on the impugned inputs – in favor of assessee
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