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2017 (10) TMI 1225 - AT - Central ExciseCENVAT credit - credit taken was disputed by the Department on the ground that the inputs used in the trial production were converted into waste and scrap; and that since the goods were not used for manufacture of finished goods - Held that: - As per the statutory provisions, taking of Cenvat Credit is subject to the condition that the inputs and capital goods are received in the factory of manufacture of final product. In this case, the fact is not under dispute that the disputed goods were received in the factory and intended for use in the manufacture of excisable final product. Since the appellant commenced its manufacturing activities on trial basis and commissioning of its plant facilities, those goods were used in such trial run. Accordingly, after use in the manufacturing processes, the inputs became waste. Since, the goods have been put to use for the intended purpose and admittedly received in the factory of manufacture, the requirement of Rule 3 ibid has been duly complied with for the purpose of availment of Cenvat credit. Appeal allowed - decided in favor of appellant.
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