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TMI Blog2016 (11) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of vehicles - Decided in favor of the assessee. - E/86153/13 - A/89917/16/EB. - Dated:- 1-8-2016 - Shri M.V. Ravindran, Member (Judicial) and Shri Devender Singh, Member (Technical) Shri Rajesh Ostwal, Advocate for the appellant Shri Hitesh Shah, Commissioner (AR) for the respondent Per: M.V. Ravindran This appeal is directed against Order-in-Original No. 42/RKS/CEX/P-I/2012 dated 12.12.2012. 2. Heard both sides and perused the records. 3. The issue involved in this appeal is regarding the denial of cenvat credit to the appellant of the service tax paid on Consulting Engineers Services which are exclusively used in R D activities in the Engineering Research Centre of the assessee and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Consulting Engineers in ERC are only for preliminary vehicle or the vehicle on which no central excise duty is paid. He would be refer to the meaning of the word prototype in Shorter Oxford English Dictionary. It is his further submission that the prototype are destroyed during the testing of the vehicle and are exempted by notification 167/71 which would mean that the prototype which are manufactured/built in ERC are exempted from payment of duty, corollary of which is that the appellant is not eligible to avail the cenvat credit on input services. He would read the decision of the Tribunal in the case of Jyoti Structures Ltd. 2004 (170) ELT 190, Robert Bosch India Ltd. 2004 (178) ELT 701 for the proposition that testing charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to the manufacture of vehicles. Prototype by definition is only a preliminary sample. As per Shorter Oxford English Dictionary 5th Edition prototype means The first or primary type of something; the original of which a copy, imitation, representation, derivative, or improved form exists or is made; a pattern, a model, an archetype or primary version of a vehicle, machine, etc. Thus, as per the ordinary meaning of term, prototype which is only a primary version and is a necessary step before commercial production is undertaken. In the present case, the appellant has obtained technical assistance which has been used in the development of prototypes and the consultancy fees amounting thousands of crores of rupees has been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puts viz. for the procurement of inputs and for the inward transportation of inputs were intended to be brought within the purview of Rule 2 (l). Rule 2 (l) must be read in its entirety. ......... This must be read with the broad and comprehensive meaning of the expression input service in Rule 2 (l). 7.2.............. 7.3 In view of the above, the scope of the expression input service is very wide to cover not only services used directly in the manufacture of commercial vehicles but also services which are used indirectly or in relation to the manufacture of commercial vehicles. Therefore, in the present case, we accept the contention of the appellant that the consulting engineers service which they received from the foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X
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