https://www.taxtmi.com/caselaws?id=85020 Tapping electrodes used in the manufacture of calcium carbide were treated as inputs used in or in relation to manufacture because they performed an essential function by generating the electric arc and keeping the material molten for removal from the furnace. Since the calcium carbide was captively consumed in producing PVC resin, the same functional nexus extended to the final product. The applicable test was indispensability to the manufacturing process, not physical presence in the end product. Modvat credit was therefore available and denial of credit was unsustainable. en-us Mon, 08 Jan 1996 00:00:00 +0530 Tue, 02 Aug 2011 12:20:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=85020 Tapping electrodes used in the manufacture of calcium carbide were treated as inputs used in or in relation to manufacture because they performed an essential function by generating the electric arc and keeping the material molten for removal from the furnace. Since the calcium carbide was captively consumed in producing PVC resin, the same functional nexus extended to the final product. The applicable test was indispensability to the manufacturing process, not physical presence in the end product. Modvat credit was therefore available and denial of credit was unsustainable. Case-Laws Central Excise Mon, 08 Jan 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=85020