https://www.taxtmi.com/caselaws?id=86123 Coated abrasives used in the polishing section for finishing watch components were treated as admissible inputs for Modvat credit under Rule 57A of the Central Excise Rules, 1944. The Tribunal applied the principle that items used in or in relation to manufacture, with a direct nexus to the final product, qualify as inputs even if they are consumables that wear out and require replacement. It held that these abrasives were not merely parts of machinery within the exclusion clause, so the exclusion did not apply. Modvat credit was therefore allowable to the assessee. en-us Tue, 06 Aug 1996 00:00:00 +0530 Wed, 10 Aug 2011 13:19:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=86123 Coated abrasives used in the polishing section for finishing watch components were treated as admissible inputs for Modvat credit under Rule 57A of the Central Excise Rules, 1944. The Tribunal applied the principle that items used in or in relation to manufacture, with a direct nexus to the final product, qualify as inputs even if they are consumables that wear out and require replacement. It held that these abrasives were not merely parts of machinery within the exclusion clause, so the exclusion did not apply. Modvat credit was therefore allowable to the assessee. Case-Laws Central Excise Tue, 06 Aug 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=86123