https://www.taxtmi.com/caselaws?id=85302 Steel balls used in ball mills for grinding material in the manufacture of soft ferrite were treated as inputs used in relation to manufacture under Rule 57A of the Central Excise Rules, 1944. Because the grinding process could not be completed without them, and they wore out and were replaced periodically, they had a functional nexus with the manufacturing process. They were also not regarded in trade as tools or equipment, despite the department's objection, and their classification under Chapter 72 supported their character as consumables rather than excluded implements. Modvat credit was therefore admissible. en-us Tue, 02 Apr 1996 00:00:00 +0530 Fri, 05 Aug 2011 18:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=85302 Steel balls used in ball mills for grinding material in the manufacture of soft ferrite were treated as inputs used in relation to manufacture under Rule 57A of the Central Excise Rules, 1944. Because the grinding process could not be completed without them, and they wore out and were replaced periodically, they had a functional nexus with the manufacturing process. They were also not regarded in trade as tools or equipment, despite the department's objection, and their classification under Chapter 72 supported their character as consumables rather than excluded implements. Modvat credit was therefore admissible. Case-Laws Central Excise Tue, 02 Apr 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=85302