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TMI Blog2019 (4) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... ef facts are that the appellants are engaged in brake assembly and are holders of Central Excise registration. On verification of records of the assessees, it was noticed that they have procured raw materials such as, steel, aluminium, rubber etc., and have manufactured braking system for automotive and non-automotive applications in the manufacturing Unit and had cleared the same on payment of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant in the same premises of the factory is nothing but an integral part of the manufacturing activity. Without such R & D works, the appellant cannot test and improve their final products so also they have to upto date and modify the technology or process of manufacturing activity, so as to make it commercially feasible. R & D activities are very much needed to improve manufacturing activity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n denied only for those inputs and capital goods, which were used in the R & D activity by the appellant. The R & D activity is no way connected with the manufacturing activity and, therefore, credit is not eligible. He relied upon the decision of the Tribunal in the case of M/s. Bajaj Auto Ltd., Vs Commissioner of Central Excise, Pune reported in 2004 (176) E.L.T.162 (Tri.-Mum.). 4. Heard both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the definition of "Capital Goods" also, it is seen that when the capital goods listed therein are used in the factory by the manufacturer would be eligible for credit. For any manufacturer, R & D activity is indispensable part of the manufacturing activity. The manufacturer has to improve their finished products and also seek out new methods or process for manufacturing final product so as to make ..... X X X X Extracts X X X X X X X X Extracts X X X X
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