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2018 (11) TMI 493 - AT - Central ExciseCENVAT Credit - inputs/capital goods used in their Research and Development (R&D) unit - case of the Department is that since the capital goods installed in the R&D Division are not used for manufacture of finished products, they are not eligible for Credit - Held that:- R&D Division is an integral part of the factory wherein the quality testing and other activities for improving the products takes place. It is usual that every manufacturing factory has a R&D Division wherein the Research and Development of the finished products as well as the process of manufacture is undertaken. This being the situation, the capital goods installed in the R&D Division are used in relation to the activity of manufacture and therefore, eligible for Credit. Disallowance of Credit on inputs - Held that:- The definition of inputs that the goods brought within the factory used for any purpose would be eligible for Credit. Thus, the definition of inputs has a wide ambit so as to cover all goods which have been brought into the factory - credit allowed. Appeal allowed - decided in favor of appellant.
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