Cenvat credit on rent paid to r & d unit

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Munisami (Querist)
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29 August 2016 we have R & D plant outside manufacturing unit, in that we paid rent to R & D plant, my query is we are eligible to avail cenvat credit rent paid to R & D plant outside manufacturing unit

If yes please provide notification * Case law

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
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29 August 2016 There Are many case laws which support that the services received outside factory is eligible for Input credit if such services are directly or indirectly relates to mfg. of goods.
In your case if R&D is primary factor for your Manufacturing process than you can take the credit of same
You can refer Case law of Zydus tech Ltd. v. CST (2013)60 VST 376(CESTAT) for R&D expenditure
and for service received outside the factory you can refer........
1. CCE v. Vikram Cement (2009) 22 STT 492(CESTAT SMB)
2. CCE v. Ultratech Cement (2012) 278 ELT 523 (CESTAT)
3. Deepak Fertilizers and Petrochemicals v. CCE (2013) 39 STT 425

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