https://www.taxtmi.com/caselaws?id=87178 Rule 57Q Modvat credit was treated as available for items with a direct and functional nexus to the manufacturing process or an integral role in plant and machinery. Electric cables, transformers, compressors, and black steel tubes and fittings used for movement of air, steam or water within the factory were regarded as qualifying capital goods. By contrast, water treatment plant equipment, cooling tower material, insulation material, resistors, thermometers, gauges and similar articles were found too remote from the manufacturing stream and outside the restrictive definition of capital goods, so credit on those items was denied. The stated principle was that functional connection with manufacture determines eligibility. en-us Wed, 11 Jun 1997 00:00:00 +0530 Sat, 03 Sep 2011 12:38:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=87178 Rule 57Q Modvat credit was treated as available for items with a direct and functional nexus to the manufacturing process or an integral role in plant and machinery. Electric cables, transformers, compressors, and black steel tubes and fittings used for movement of air, steam or water within the factory were regarded as qualifying capital goods. By contrast, water treatment plant equipment, cooling tower material, insulation material, resistors, thermometers, gauges and similar articles were found too remote from the manufacturing stream and outside the restrictive definition of capital goods, so credit on those items was denied. The stated principle was that functional connection with manufacture determines eligibility. Case-Laws Central Excise Wed, 11 Jun 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=87178