https://www.taxtmi.com/caselaws?id=87226 Gear boxes and measuring tanks were treated as capital goods for Modvat credit purposes because their function in the manufacturing process made them components necessary to the plant and machinery used in manufacture. Gear boxes operated as mechanical components fitted in reaction vessels to drive the stirrer, while measuring tanks received and measured liquid raw material and were connected to the plant for controlled material flow. On that functional basis, both items fell within Rule 57Q(i)(b), and Modvat credit was admissible; the credit disallowance was unsustainable. en-us Wed, 30 Jul 1997 00:00:00 +0530 Sat, 03 Sep 2011 15:47:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=87226 Gear boxes and measuring tanks were treated as capital goods for Modvat credit purposes because their function in the manufacturing process made them components necessary to the plant and machinery used in manufacture. Gear boxes operated as mechanical components fitted in reaction vessels to drive the stirrer, while measuring tanks received and measured liquid raw material and were connected to the plant for controlled material flow. On that functional basis, both items fell within Rule 57Q(i)(b), and Modvat credit was admissible; the credit disallowance was unsustainable. Case-Laws Central Excise Wed, 30 Jul 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=87226