https://www.taxtmi.com/caselaws?id=80502 Oxygen gas consumed only to operate a gas cutter used in ship-breaking was treated as an item used in relation to a tool or appliance, not as an eligible MODVAT input under Rule 57A. The analysis turned on the actual use of the gas in the process: it merely enabled the cutter to function while disintegrating the ship, and the exclusion for machines, machinery, equipment, apparatus, tools or appliances applied. The fact that scrap emerged from the operation did not change the character of the gas's use. Credit was therefore denied because the gas was linked to breaking an input, not to manufacture of the final product. en-us Mon, 26 Feb 1990 00:00:00 +0530 Fri, 17 Jun 2011 12:58:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=80502 Oxygen gas consumed only to operate a gas cutter used in ship-breaking was treated as an item used in relation to a tool or appliance, not as an eligible MODVAT input under Rule 57A. The analysis turned on the actual use of the gas in the process: it merely enabled the cutter to function while disintegrating the ship, and the exclusion for machines, machinery, equipment, apparatus, tools or appliances applied. The fact that scrap emerged from the operation did not change the character of the gas's use. Credit was therefore denied because the gas was linked to breaking an input, not to manufacture of the final product. Case-Laws Central Excise Mon, 26 Feb 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=80502