https://www.taxtmi.com/caselaws?id=81821 MODVAT credit under Rule 57A was confined to goods used in or in relation to manufacture and having a direct nexus with an integrally connected manufacturing process. Chemicals used for softening water in paper manufacture were treated as eligible, but hydrochloric acid used only for cleaning clogged wire mesh was treated as a maintenance item and not an input in manufacture. Chipper knives were regarded as tools, while dandy covers, wire netting, woollen felts, transmission belting, and similar items were treated as machine parts used to keep the plant operational. On that basis, credit was denied on the disputed items other than the chemical used in the softening-water process. en-us Mon, 09 Mar 1992 00:00:00 +0530 Wed, 29 Jun 2011 11:12:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=81821 MODVAT credit under Rule 57A was confined to goods used in or in relation to manufacture and having a direct nexus with an integrally connected manufacturing process. Chemicals used for softening water in paper manufacture were treated as eligible, but hydrochloric acid used only for cleaning clogged wire mesh was treated as a maintenance item and not an input in manufacture. Chipper knives were regarded as tools, while dandy covers, wire netting, woollen felts, transmission belting, and similar items were treated as machine parts used to keep the plant operational. On that basis, credit was denied on the disputed items other than the chemical used in the softening-water process. Case-Laws Central Excise Mon, 09 Mar 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=81821