Credit allowed even Goods used for trial run of production/ demonstration

Dy. General Manager Tata Motors Ltd. [2015 (40) S.T.R. 269 (Tribunal – Mumbai)]

The CESTAT Mumbai branch in this matter held that the Prototype is a necessary step before commercial production; hence, Consulting Engineers Services used in Research and Development in Engineering Research Centre for manufacture of prototypes of cars, can be said to be used in relation to manufacture of car and, therefore, credit of such service is available.