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2015 (12) TMI 809 - AT - Service TaxWaiver of pre deposit - Denial of CENVAT Credit - Held that:- Under Rule 3 of Cenvat Credit Rules 2004 in respect of input service, credit is admissible to a manufacturer or a service provider unlike the case of inputs where the receipt of inputs in the factory is required. For input services there is no requirement that it should be received in a particular place for availament of credit. One of the main objections in this case is that the services were received in R & D unit and there was no manufacture of excisable goods or provision of output service in the R & D unit. There is no dispute that R & D units belong to the same manufacturer and in the excise registration and service tax registration for the units, the manufacturer is one and the same. In the case of M/s Cadila Healthcare Ltd., [2013 (1) TMI 304 - GUJARAT HIGH COURT ] even the credit relating to R & D work in respect of product which was ultimately not manufactured at all was held to be admissible. The Hon’ble High Court of Gujarat upheld the decision by the Tribunal. R & D cost is necessarily factored to arrive the sale value of the final product. - Stay granted.
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