https://www.taxtmi.com/caselaws?id=89950 Air-conditioner installed in the capsule manufacturing section was treated as capital goods used in or in relation to manufacture because the Drugs and Cosmetics Rules, 1945 required the filling room for hard gelatin capsules to be air-conditioned and dehumidified. The Tribunal found that temperature and humidity control was necessary to prevent deformation of capsule shells, protect the medicinal powder, and maintain prescribed quality standards, creating a direct nexus with the manufacturing process. Following earlier Tribunal authority on similar facts, it held that the air-conditioning plant was essential to completion of manufacture and therefore eligible for Modvat credit. en-us Thu, 24 Dec 1998 00:00:00 +0530 Sat, 01 Oct 2011 14:20:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=89950 Air-conditioner installed in the capsule manufacturing section was treated as capital goods used in or in relation to manufacture because the Drugs and Cosmetics Rules, 1945 required the filling room for hard gelatin capsules to be air-conditioned and dehumidified. The Tribunal found that temperature and humidity control was necessary to prevent deformation of capsule shells, protect the medicinal powder, and maintain prescribed quality standards, creating a direct nexus with the manufacturing process. Following earlier Tribunal authority on similar facts, it held that the air-conditioning plant was essential to completion of manufacture and therefore eligible for Modvat credit. Case-Laws Central Excise Thu, 24 Dec 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=89950