https://www.taxtmi.com/caselaws?id=94111 Spares of a factory air-conditioning system were treated as capital goods for Modvat credit purposes because they fell within the broad description of machines, plant, equipment, apparatus, tools or appliances used in production. The air-conditioning system was functionally necessary to maintain the temperature and humidity required for spinning cotton yarn, and it was used in the manufacturing operations within the factory. On that basis, duty credit was admissible. The stated principle is that goods need not be directly used in conversion if they are functionally necessary for manufacture and integral to production operations. en-us Thu, 28 Sep 2000 00:00:00 +0530 Sat, 19 Nov 2011 11:40:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=94111 Spares of a factory air-conditioning system were treated as capital goods for Modvat credit purposes because they fell within the broad description of machines, plant, equipment, apparatus, tools or appliances used in production. The air-conditioning system was functionally necessary to maintain the temperature and humidity required for spinning cotton yarn, and it was used in the manufacturing operations within the factory. On that basis, duty credit was admissible. The stated principle is that goods need not be directly used in conversion if they are functionally necessary for manufacture and integral to production operations. Case-Laws Central Excise Thu, 28 Sep 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=94111