https://www.taxtmi.com/caselaws?id=96353 Machinery or equipment that is functionally necessary to the manufacturing process qualifies as capital goods for Modvat credit under Rule 57Q. Electronic digital scales, an unjacketed vessel, electric motors and a spare kit for a valve positioner were treated as eligible because they performed essential operations connected with drawing raw material, controlling liquid flow, pumping water and maintaining the plant. The earlier Larger Bench view that essential manufacturing equipment falls within the ambit of capital goods was followed, and the Modvat credit on the disputed items was sustained. en-us Mon, 09 Apr 2001 00:00:00 +0530 Wed, 21 Dec 2011 11:47:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96353 Machinery or equipment that is functionally necessary to the manufacturing process qualifies as capital goods for Modvat credit under Rule 57Q. Electronic digital scales, an unjacketed vessel, electric motors and a spare kit for a valve positioner were treated as eligible because they performed essential operations connected with drawing raw material, controlling liquid flow, pumping water and maintaining the plant. The earlier Larger Bench view that essential manufacturing equipment falls within the ambit of capital goods was followed, and the Modvat credit on the disputed items was sustained. Case-Laws Central Excise Mon, 09 Apr 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96353