S.S. Sekhon, Member (T)
1. Appellants have been denied credit on such amounts of inputs which have not been used in manufacture of final products but have been used up in the R & D department of the assessee. Hence this appeal.
2. When the matter was heard, it was stressed that the term ‘used in relation to manufacture of final product’ should be given an amplitude to include use in the R & D department. Considering the same in light of various decisions cited, there can be no conflict with the plea to give the term ‘used in relation to manufacture of final product’ a wider meaning than the term ‘use in the manufacture of final product’, but the width cannot be used to include use exclusively in the R & D department especially when the appellant cannot and does not admit that R & D department is not engaged in or using the said inputs in the Research & Development of final products which are different from the products declared and the dutibility and exigibility of these ‘other final products’ has not been considered and established. Credit on inputs used in products yet to be found eligible ‘final products’ and modvat scheme cannot be granted.
3. Since no material is on record that R & D is restricted to the declared final products, this appeal is required to be dismissed.
(Pronounced in Court)