https://www.taxtmi.com/caselaws?id=87173 Modvat credit under Rule 57Q was held unavailable for air conditioners used only to maintain a suitable manufacturing environment, because capital goods must have a direct nexus with production, processing, or change in the substance of goods in the manufacturing stream. Equipment that merely creates a congenial atmosphere, though helpful to manufacture, does not qualify; the later exclusion of air conditioners was treated as consistent with that restrictive scope. Penalty was not justified in the absence of mala fides, so that part of the dispute was decided in favour of the assessee. en-us Wed, 04 Jun 1997 00:00:00 +0530 Sat, 03 Sep 2011 12:23:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=87173 Modvat credit under Rule 57Q was held unavailable for air conditioners used only to maintain a suitable manufacturing environment, because capital goods must have a direct nexus with production, processing, or change in the substance of goods in the manufacturing stream. Equipment that merely creates a congenial atmosphere, though helpful to manufacture, does not qualify; the later exclusion of air conditioners was treated as consistent with that restrictive scope. Penalty was not justified in the absence of mala fides, so that part of the dispute was decided in favour of the assessee. Case-Laws Central Excise Wed, 04 Jun 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=87173