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<h1>Appellate Tribunal Upholds Modvat Credit for Machinery in Yarn Production</h1> The Appellate Tribunal CEGAT, Chennai affirmed the Commissioner (Appeals) ruling allowing Modvat credit for machinery items crucial to quality yarn ... Modvat on capital goods The Appellate Tribunal CEGAT, Chennai upheld the Commissioner (Appeals) decision that certain machinery items are eligible for Modvat credit as they are essential for manufacturing quality yarn. The Revenue's argument was rejected based on the findings that the items are integral to the manufacturing process. The decision was supported by a Supreme Court judgment.
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