https://www.taxtmi.com/caselaws?id=91734 Slag pots used to collect red hot liquid waste metal from an electric arc furnace were treated as capital goods for Modvat credit because they had a functional nexus with the manufacturing process. The equipment was used as a permanent part of the waste-collection and recycling operation, and the cooled material was reused in steel castings. Applying the test of functional connection with manufacture, the tribunal accepted that equipment integral to production and recycling can fall within Rule 57Q. The denial of Modvat credit was therefore set aside in favour of the assessee. en-us Fri, 05 Feb 1999 00:00:00 +0530 Thu, 20 Oct 2011 15:13:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=91734 Slag pots used to collect red hot liquid waste metal from an electric arc furnace were treated as capital goods for Modvat credit because they had a functional nexus with the manufacturing process. The equipment was used as a permanent part of the waste-collection and recycling operation, and the cooled material was reused in steel castings. Applying the test of functional connection with manufacture, the tribunal accepted that equipment integral to production and recycling can fall within Rule 57Q. The denial of Modvat credit was therefore set aside in favour of the assessee. Case-Laws Central Excise Fri, 05 Feb 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=91734