https://www.taxtmi.com/caselaws?id=92764 Voltage stabilizers and micro converters used in the manufacture of telecommunication cables were treated as capital goods because each had a direct functional nexus with the manufacturing process. The voltage stabilizer maintained stable input voltage for the insulating line machine, while the micro converter supported take-up motor operations and diameter compensation in the group twinner machine. Applying the settled principle that equipment directly used for producing or processing the final product qualifies for Modvat credit, credit was held admissible on both items and the Revenue's challenge failed. en-us Mon, 11 Oct 1999 00:00:00 +0530 Fri, 04 Nov 2011 18:39:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=92764 Voltage stabilizers and micro converters used in the manufacture of telecommunication cables were treated as capital goods because each had a direct functional nexus with the manufacturing process. The voltage stabilizer maintained stable input voltage for the insulating line machine, while the micro converter supported take-up motor operations and diameter compensation in the group twinner machine. Applying the settled principle that equipment directly used for producing or processing the final product qualifies for Modvat credit, credit was held admissible on both items and the Revenue's challenge failed. Case-Laws Central Excise Mon, 11 Oct 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=92764