https://www.taxtmi.com/caselaws?id=88984 Modvat credit under Rule 57Q was held inadmissible on air-conditioners used in medicine manufacturing because eligibility required the goods to fall within the statutory definition of capital goods and to have a direct nexus with the manufacturing process; equipment that merely creates a controlled atmosphere, even if required under drug regulations, does not satisfy that test. The Tribunal also interfered with the penalty quantum on the facts and reduced both penalties. The substantive credit claim failed, but partial relief was granted on penalties. en-us Tue, 27 Jan 1998 00:00:00 +0530 Thu, 22 Sep 2011 16:42:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=88984 Modvat credit under Rule 57Q was held inadmissible on air-conditioners used in medicine manufacturing because eligibility required the goods to fall within the statutory definition of capital goods and to have a direct nexus with the manufacturing process; equipment that merely creates a controlled atmosphere, even if required under drug regulations, does not satisfy that test. The Tribunal also interfered with the penalty quantum on the facts and reduced both penalties. The substantive credit claim failed, but partial relief was granted on penalties. Case-Laws Central Excise Tue, 27 Jan 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=88984