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2017 (7) TMI 897 - CESTAT CHENNAICENVAT credit - job-work - denial on the ground that appellant had used capital goods exclusively in manufacture of Aluminium components on job work basis in terms of Rule 57R (1) of erstwhile CER, 1944 - Held that: - It is seen that on the matter of component washing machine, the appellant has been crying hoarse right from the initial adjudication proceedings that the said item was a new concept conceived and developed by them, that the same was under development, the design of the same was not yet frozen and therefore said machine was not a completely manufactured machine. We find merit in this contention. There is no allegation by department that the appellant had earlier manufactured and sold such component washing machines or for that matter, whether the said item found in the premises being utilized in the regular manufacturing operations. The averment of the appellant that it was only a prototype under development has also not been adequately countered by any of the lower authorities. It would not be just and fair to tax the appellant for an attempt at innovation, especially when that attempt was still in process and had not culminated in manufacture of a complete and fully functional machine. Appeal allowed - decided in favor of appellant.
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