29 August 2016
we have R & D plant outside manufacturing unit, in that we paid rent to R & D plant, my query is we are eligible to avail cenvat credit rent paid to R & D plant outside manufacturing unit
29 August 2016
There Are many case laws which support that the services received outside factory is eligible for Input credit if such services are directly or indirectly relates to mfg. of goods. In your case if R&D is primary factor for your Manufacturing process than you can take the credit of same You can refer Case law of Zydus tech Ltd. v. CST (2013)60 VST 376(CESTAT) for R&D expenditure and for service received outside the factory you can refer........ 1. CCE v. Vikram Cement (2009) 22 STT 492(CESTAT SMB) 2. CCE v. Ultratech Cement (2012) 278 ELT 523 (CESTAT) 3. Deepak Fertilizers and Petrochemicals v. CCE (2013) 39 STT 425
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