https://www.taxtmi.com/caselaws?id=98114 A cylindrical grinder qualified for Modvat credit as capital goods because it was used for resharpening TH rolls, an activity necessary to maintain the quality of steel wires, and it had sufficient nexus with manufacturing. A P.D. pump also qualified because it pumped lubricant into the machine tool used to cut the steel wires, and that cutting operation was integral to production. The governing principle stated is that an item is eligible as capital goods where it has a direct and sufficient nexus with the manufacturing activity and is necessary for the required quality or production of the final product. en-us Mon, 29 Nov 1999 00:00:00 +0530 Thu, 19 Jan 2012 12:22:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98114 A cylindrical grinder qualified for Modvat credit as capital goods because it was used for resharpening TH rolls, an activity necessary to maintain the quality of steel wires, and it had sufficient nexus with manufacturing. A P.D. pump also qualified because it pumped lubricant into the machine tool used to cut the steel wires, and that cutting operation was integral to production. The governing principle stated is that an item is eligible as capital goods where it has a direct and sufficient nexus with the manufacturing activity and is necessary for the required quality or production of the final product. Case-Laws Central Excise Mon, 29 Nov 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98114