https://www.taxtmi.com/caselaws?id=95581 Modvat credit was treated as admissible on capital goods used for energy-saving and power-efficiency purposes because direct physical participation in the manufacture of final goods is not the governing test. The relevant principle is whether the goods are capital goods sufficiently connected with the manufacturing activity in a legally recognised manner, and equipment that improved electricity efficiency and reduced wastage satisfied that standard. The Revenue's challenge therefore failed. en-us Tue, 25 Jan 2000 00:00:00 +0530 Tue, 13 Dec 2011 15:40:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=95581 Modvat credit was treated as admissible on capital goods used for energy-saving and power-efficiency purposes because direct physical participation in the manufacture of final goods is not the governing test. The relevant principle is whether the goods are capital goods sufficiently connected with the manufacturing activity in a legally recognised manner, and equipment that improved electricity efficiency and reduced wastage satisfied that standard. The Revenue's challenge therefore failed. Case-Laws Central Excise Tue, 25 Jan 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=95581