https://www.taxtmi.com/caselaws?id=82538 Liquid nitrogen used to chill reactor vessels and maintain an inert atmosphere during bulk drug manufacture was treated as an input used in relation to manufacture for Modvat credit under Rule 57A. Although it did not become part of the final product or act as a raw material in the chemical reaction, it was found indispensable to secure the proper reaction, prevent oxidation and decomposition, and achieve the desired output. The governing test applied was functional necessity to the manufacturing process, not physical incorporation into the goods. On that basis, it was regarded as a consumable eligible for Modvat credit. en-us Mon, 19 Apr 1993 00:00:00 +0530 Tue, 05 Jul 2011 17:28:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=82538 Liquid nitrogen used to chill reactor vessels and maintain an inert atmosphere during bulk drug manufacture was treated as an input used in relation to manufacture for Modvat credit under Rule 57A. Although it did not become part of the final product or act as a raw material in the chemical reaction, it was found indispensable to secure the proper reaction, prevent oxidation and decomposition, and achieve the desired output. The governing test applied was functional necessity to the manufacturing process, not physical incorporation into the goods. On that basis, it was regarded as a consumable eligible for Modvat credit. Case-Laws Central Excise Mon, 19 Apr 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=82538