https://www.taxtmi.com/caselaws?id=98173 Nitrogen gas generated and wholly captively consumed in the manufacture of refractory bricks qualified for Modvat credit as capital goods under Rule 57Q, because the governing test is whether the goods function as intermediary goods in the manufacture of the final product and are not sold by the assessee. The scope of intermediary goods is not limited to by-products, and credit cannot be denied merely because the product is deliberately manufactured. On the admitted facts, the nitrogen gas was never sold and was necessary for manufacture of the final dutiable product, so the Revenue's objection under Rule 57R(1) failed. en-us Tue, 28 Mar 2000 00:00:00 +0530 Thu, 19 Jan 2012 15:23:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98173 Nitrogen gas generated and wholly captively consumed in the manufacture of refractory bricks qualified for Modvat credit as capital goods under Rule 57Q, because the governing test is whether the goods function as intermediary goods in the manufacture of the final product and are not sold by the assessee. The scope of intermediary goods is not limited to by-products, and credit cannot be denied merely because the product is deliberately manufactured. On the admitted facts, the nitrogen gas was never sold and was necessary for manufacture of the final dutiable product, so the Revenue's objection under Rule 57R(1) failed. Case-Laws Central Excise Tue, 28 Mar 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98173