https://www.taxtmi.com/caselaws?id=92752 Functional use in the manufacturing process determined Modvat eligibility for items such as cables, pipes, pumps, electric motors, tanks, air compressors, boilers and related spares. The Tribunal applied the Larger Bench view that goods used in the processing line, including pipes, valves and pumps, could qualify as capital goods when they supported plant operations, transferred process material or powered equipment. V-belts used to transmit power from motors to machinery were also treated as eligible on the same reasoning. Chemicals used for water treatment were treated differently and excluded from capital goods treatment. Accordingly, the disputed items other than water-treatment chemicals were eligible for Modvat credit. en-us Fri, 24 Sep 1999 00:00:00 +0530 Fri, 04 Nov 2011 17:58:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=92752 Functional use in the manufacturing process determined Modvat eligibility for items such as cables, pipes, pumps, electric motors, tanks, air compressors, boilers and related spares. The Tribunal applied the Larger Bench view that goods used in the processing line, including pipes, valves and pumps, could qualify as capital goods when they supported plant operations, transferred process material or powered equipment. V-belts used to transmit power from motors to machinery were also treated as eligible on the same reasoning. Chemicals used for water treatment were treated differently and excluded from capital goods treatment. Accordingly, the disputed items other than water-treatment chemicals were eligible for Modvat credit. Case-Laws Central Excise Fri, 24 Sep 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=92752