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TMI Blog2018 (3) TMI 1111X X X X Extracts X X X X X X X X Extracts X X X X ..... R), for respondent The facts of the case are that the appellant unit is engaged in the manufacture of prototype vehicles which are cleared on payment of duty. For the purpose of research and development of prototype vehicle, they received various inputs and capital goods on which they availed credit. Being R&D unit, there is no regular production of the motor vehicle. On the basis of R&D, it take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ototype vehicle was due to the reason that the prototype vehicle is manufactured after R&D activity which takes lot of time. The appellant is availing cenvat credit on the input as such when it is received in the factory. The factory is registered and as and when the input cleared as such or the prototype vehicle is cleared, they are discharging the excise duty as per law. Since the unit is regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd clearing the same on payment of duty. Therefore, being a manufacturer, whatever inputs are received in the factory are admissible input in terms of the definition of input given in Rule 2(k) of Cenvat Credit Rules. As per Rule 3, cenvat credit is allowed to be taken when the input is received in the factory of the registered assessee. In the present case, the appellant has taken the credit as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing is not undertaken but the unit is registered, the appellant is entitled to avail the cenvat credit in terms of Rule 16 of the Central Excise Rules, 2002. The only requirement is as and when the said input is cleared, excise duty equal to cenvat credit is required to be discharged. To this aspect, there is no dispute. Therefore, I do not see any reason why the cenvat credit should be denie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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