Material used for R & D Purpose, Central Excise

[Swapneswar muduli]

Dear Sir,

We are a manufacture if we use some raw material for R & D purpose and on these material we taken Cenvat Credit so when we issue the stock for R & D purpose at that time we need to reverse the excise duty on that material or not ?

Regards

Swapneswar Muduli

Posts / Replies

[KASTURI SETHI]

Yes you can take cenvat credit. It is in relation to the manufacture of final product. Pl. note that R & D is very much basis of qualitative product. Goods are not marketable without quality.