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2016 (9) TMI 627 - CESTAT CHANDIGARHCenvat credit - recovery as wrongly availed in respect of capital goods used exclusively for R&D purposes - machines/ equipments/ apparatus installed in engineering Research Design and Development laboratory was located in the buildings separately from the production area - Held that:- the assessee’s R&D facility is located within the factory premises registered with the Central Excise Department, housed in buildings which are different from the factory sheds. When considered with reference to the definition of capital goods, we are of the view that there is no bar in using the capital goods in the buildings earmarked for R&D activities as long as it is situated within the factory premises registered with the Central Excise Department. The definition as it stands now does not make it mandatory that the capital goods should be used in or in relation to the manufacture of final products as was the case in some earlier periods. Therefore, the demand for reversal of cenvat credit is not sustainable inasmuch as it is allowable under the definition of capital goods under the Cenvat Credit Rules in view of the various decisions of Hon'ble Supreme Court, High Court and Tribunal. - Decided in favour of appellant
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