https://www.taxtmi.com/caselaws?id=85914 Humidification plant did not qualify as capital goods for Modvat credit under Rule 57Q because it was used only to maintain factory atmosphere and humidity, not to produce or process goods or bring about a change in their substance. The strict definition of capital goods requires direct participation in the manufacturing stream, and mere relevance to product quality is insufficient to establish the necessary nexus with production or processing. On that basis, Modvat credit was held inadmissible and the Revenue's appeal succeeded. en-us Sun, 11 Aug 1996 00:00:00 +0530 Mon, 08 Aug 2011 18:51:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=85914 Humidification plant did not qualify as capital goods for Modvat credit under Rule 57Q because it was used only to maintain factory atmosphere and humidity, not to produce or process goods or bring about a change in their substance. The strict definition of capital goods requires direct participation in the manufacturing stream, and mere relevance to product quality is insufficient to establish the necessary nexus with production or processing. On that basis, Modvat credit was held inadmissible and the Revenue's appeal succeeded. Case-Laws Central Excise Sun, 11 Aug 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=85914