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TMI Blog2015 (9) TMI 1159X X X X Extracts X X X X X X X X Extracts X X X X ..... ured and cleared on payment of duty, by suitable tests and norm fixation. Such an activity in R&D and Quality Control Laboratory is essential for manufacture of finished goods and has to be held as in relation to manufacture of excisable goods and will be eligible to Cenvat Credit under CCR. - Decided in favour of assessee. - Appeal No. E/10956/2013-SM - Order No. A/11105/2015 - Dated:- 22-7-2015 - H K Thakur, Member (T), J. For the Appellant : Shri Willinggon C, Adv For the Respondent : Shri Govind Jha, AR ORDER Per H K Thakur This appeal has been filed by the appellant against OIA No. PJ/593/VDR-I/2012-13 Dated 20.03.2013 passed by commissioner (A), Vadodara under which OIO No. 01/Dem/JC/Div. - iv/2012 dated 16.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... go through para - 5.5 and 5.6 of the OIA dated 20.03.2013 to argue that first appellate authority has only denied credit on the grounds that capital goods and inputs are not used in the manufacture of finished excisable goods and has not given any cognizance to the earlier OIA dated 20/22.12.2011 passed by Commr (A) on the same issue Appellant relied upon the following case Laws:- (i) Tata Engineering and Locomotive Co. Ltd. vs. CCE Pune [2010 (256) ELT 56 (Bom.)] (ii) USV Ltd. vs. CCE Mumbai - [2006 (195) ELT 158 ( Tri.-Mumbai)] (ii) Sudarshon Chemicals Inds. Ltd. vs. CCE, Pune-II [2010 (262) ELT 974 (Tri.-Mumbai)] (iv) CCE Meerut-II vs. India Glycols Ltd. [2006 (196) ELT 221 (Tri.-Del.)] 3. Shri Govind Jha (AR) appearing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sts regarding necessary colour texture to the plastic granule as per specifications and requirements of the customers, to match the specifications as per global norms and also for developing new products for the customers etc. Appellant will have to meet the specifications of the customers, before the products are manufactured and cleared on payment of duty, by suitable tests and norm fixation. Such an activity in R D and Quality Control Laboratory is essential for manufacture of finished goods and has to be held as in relation to manufacture of excisable goods and will be eligible to Cenvat Credit under CCR. 4.1 It is observed from the order of CESTAT Mumbai in the case of USV Ltd. vs. CCE Mumbai-I (Supra) held that credit of equipments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inition of capital goods contained in Rule 57Q, the same applied to the various goods described in the table annexed to the said Rule and used in the factory of the manufacturer of final products. (emphasizes provided). As such, it is seen that for earning the credit in terms of the said Rule, the only requirements for such specified capital goods should be used in the factory of the manufacturer of the final products. Undisputedly, Research Laboratory is situated in the licensed factory premises of the appellants, and are being used for the manufacture of the excisable goods. As such, going by the definition of the capital goods, the disputed items in question earn the credit irrespective of their not being actually used in the production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atory to determine tensile strength and other quality but not physically used in the manufacture of the final product would not fall within the sweep of the words in relation to the manufacture of finished goods appearing in Rule 57A of the Rules. 34. In order to answer the above question, at the cost of repetition, once again turning to the importance of the quality control in the age of global competition, no manufacturer could afford to push its product in the national or international market without achieving certain level of quality in the product. The quality control has become integral part of the manufacturing process, which is required to be undertaken either before the commencement of actual production or subsequent thereto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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