https://www.taxtmi.com/caselaws?id=357408 A registered manufacturing unit engaged in prototype vehicle manufacture remains entitled to Cenvat credit on inputs and capital goods even if final prototype clearances are infrequent or delayed, because receipt of inputs in the factory by a manufacturer satisfies the credit conditions under the Cenvat Credit Rules. Where inputs are cleared as such, reversal or duty payment equal to the credit taken is required, and compliance with that mechanism preserves the credit entitlement. A long gap between prototype clearances does not convert the unit into a trading concern, and credit under Rule 16 of the Central Excise Rules, 2002 remains available subject to duty payment on clearance. The denial of credit was therefore unsustainable. en-us Thu, 15 Feb 2018 00:00:00 +0530 Mon, 18 Mar 2019 15:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=357408 A registered manufacturing unit engaged in prototype vehicle manufacture remains entitled to Cenvat credit on inputs and capital goods even if final prototype clearances are infrequent or delayed, because receipt of inputs in the factory by a manufacturer satisfies the credit conditions under the Cenvat Credit Rules. Where inputs are cleared as such, reversal or duty payment equal to the credit taken is required, and compliance with that mechanism preserves the credit entitlement. A long gap between prototype clearances does not convert the unit into a trading concern, and credit under Rule 16 of the Central Excise Rules, 2002 remains available subject to duty payment on clearance. The denial of credit was therefore unsustainable. Case-Laws Central Excise Thu, 15 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=357408