2024 (9) TMI 1019

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....alty under Rule 15 of the Cenvat Credit Rules, 2004 read with Rule 25 of the Central Excise Rules, 2002. Since, the issue involved in both the appeals is denial of cenvat credit on inputs used for manufacturing samples vehicles exported for testing, therefore, both the appeals are taken up together for discussions and disposal. 2. The appellant was engaged in the manufacture of motor vehicles, spares and components falling under Chapter 87 of the First Schedule to the Central Excise Tariff Act, 1985 and was availing Cenvat credit on inputs, capital goods and input services in accordance with the provisions of Cenvat Credit Rules, 2004. 2.1 The appellant in certain cases sent their vehicles to their associated companies outside Indian terr....

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....e Final Order No. 61019/2017 dated 23.05.2017 dismissed the appeal filed by the department and decided that the sample vehicles/prototype which are exported for testing and analysis is part of the manufacturing activity. Thus, Cenvat credit was correctly availed by the appellant. 4.1 She further submits that for the period 2006-07 to 2011-12, the Hon'ble CESTAT Chandigarh in the case of Maruti Suzuki India Ltd. v The Commissioner of Central Excise, Delhi-lll vide Final Order No. 60502-60503/2023 dated 16.10.2023 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 admissib....

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....cannot be denied on the inputs used to manufacture the sample vehicles. For this, she relied upon the following decisions: * Maruti Suzuki India Ltd. v The Commissioner of Central Excise, Delhi-III vide Final Order No. 60502-60503/2023 dated 16.10.2023 * Flex Engineering Ltd. vs. CCE (2012 (276) ELT 153) (SC) * ITI Ltd. vs. Commissioner of Central Excise Bangalore-I 2018 (9) TMI 1575-CESTAT BANGALORE * Alkem Laboratories Ltd. vs C.C.E. & S.T. Daman Final Order No. A/11228/2022 dt. 18.10.2022 (Tri- Ahmedabad) * Collector of Central Excise vs. General Cement Products (P) Ltd. - 1989 (39) E.L.T. 689 (Tribunal) - CEGAT, NEW DELHI * Commissioner of C. Ex., Ahmedabad-ll vs. Cadila Healthcare Ltd. 2013 (30) S.T.R. 3 (Guj.) 4.3 S....