https://www.taxtmi.com/caselaws?id=93641 Laboratory testing equipment used to check yarn quality and defects was treated as capital goods for Modvat credit because it had a direct functional nexus with the manufacturing process and was essential for producing marketable goods. Equipment used for quality testing in relation to manufacture can qualify as capital goods where that nexus is established, and Modvat credit was therefore allowable. en-us Mon, 12 Jun 2000 00:00:00 +0530 Mon, 14 Nov 2011 18:03:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=93641 Laboratory testing equipment used to check yarn quality and defects was treated as capital goods for Modvat credit because it had a direct functional nexus with the manufacturing process and was essential for producing marketable goods. Equipment used for quality testing in relation to manufacture can qualify as capital goods where that nexus is established, and Modvat credit was therefore allowable. Case-Laws Central Excise Mon, 12 Jun 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=93641