20 September 2012
Is CENVAT credit available for material used in Research & Development? Research is being carried out in the factory premises. Provide case laws, links.
23 September 2012
Inputs used in Research and Development / Trial production are eligible for Cenvat credit. The expression "used in relation to" does not meant that the inputs should find a place in the final products cleared on payment of duty. Revenue has not made out any case that the inputs were cleared without payment of duty or they were destroyed in the process of so called R&D. Credit available.
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