9911796707
TMI Blog2024 (9) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... nt period. This Tribunal in appellant s own case M/S MARUTI SUZUKI INDIA LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, DELHI-III [ 2023 (10) TMI 803 - CESTAT CHANDIGARH] allowed the appeal filed by the appellant and held that testing of sample vehicles is integral to the activity of manufacture and thus Cenvat credit attributable to the inputs gone into manufacture of said products is admissible. As per Rule 3 of the Cenvat Credit Rules, 2004 provides that the manufacturer of a final goods shall be entitled to avail the credit of the specified duties in respect of inputs or capital goods received in factory of the manufacturer for use in or in relation to, the manufacture of the final products. The Tribunal in catena of decisions held that ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t their vehicles to their associated companies outside Indian territory for testing, research and development purposes without receipt of any payment. The fact regarding the clearance of sample vehicles for testing was invariably reflected in the Annual Reports of the appellant. Audit of the records of the appellant for relevant period was conducted wherein, audit officer took a view that the appellant is not entitled to the Cenvat Credit on such sample vehicles which were exported by the appellant for testing and research for which no foreign exchange was realised. 2.2 On these allegations, a show cause notice was issued to the appellant proposing to demand the Cenvat credit of Rs. 21,03,712/-. After following the due process, the adjudica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he inputs gone into manufacture of said products is admissible. It was further held that Cenvat credit cannot be denied merely on the basis that no export proceeds are realised or final products are destroyed as there is no provision under law to deny such credit. Ld. Counsel further submits that the Cenvat credit on the duty paid on inputs used for the manufacture of sample vehicles used for testing shall be allowed. It is submitted that Rule 3 of the Cenvat Credit Rules, 2004 ( Credit Rules ) provides that the manufacturer of a final goods shall be entitled to avail the credit of the specified duties in respect of inputs or capital goods received in factory of the manufacturer for use in or in relation to, the manufacture of the final pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (30) S.T.R. 3 (Guj.) 4.3 She further submits that the appellant exported the sample vehicles for testing under Rule 19 of the Central Excise Rules, 2002 without payment of duty by and complied with all the conditions prescribed under sub-clause (1) and the same is not disputed by the department. She further submits that in the said rule there is no such condition prescribed under the said provision restricting the availment of Cenvat credit in case of export of goods on free of charge basis. She further submits that in terms of Regulation 4(a) of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, the appellant received certificate from ABN AMRO Bank for exporting trade samples without realizing any export proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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