https://www.taxtmi.com/caselaws?id=103792 Electrical capacitors used to supply electricity to a manufacturing plant qualify as capital goods for Modvat credit where their use is indispensable to operating the manufacturing process. Their direct functional nexus with manufacture brings them within clause (b) of the capital-goods definition in Explanation (1) to Rule 57Q(1) of the Central Excise Rules, 1944. The treatment accords with the Larger Bench approach to electrical items used in manufacturing operations. Modvat credit is therefore admissible for such capacitors. en-us Wed, 21 Nov 2001 00:00:00 +0530 Fri, 24 Feb 2012 16:20:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103792 Electrical capacitors used to supply electricity to a manufacturing plant qualify as capital goods for Modvat credit where their use is indispensable to operating the manufacturing process. Their direct functional nexus with manufacture brings them within clause (b) of the capital-goods definition in Explanation (1) to Rule 57Q(1) of the Central Excise Rules, 1944. The treatment accords with the Larger Bench approach to electrical items used in manufacturing operations. Modvat credit is therefore admissible for such capacitors. Case-Laws Central Excise Wed, 21 Nov 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103792