https://www.taxtmi.com/caselaws?id=106214 Modvat credit under Rule 57Q was treated as available on capital goods used in cement manufacture even though they were not physically used within the factory premises. The Tribunal applied the Supreme Court's interpretation of input credit principles to capital goods credit, holding that the controlling test was whether the goods were used in or in relation to manufacture of the final product. Since such use was not denied, physical utilisation inside the factory was not regarded as a necessary condition for credit. On that basis, the capital goods credit was held admissible and the Department's challenge failed. en-us Tue, 26 Mar 2002 00:00:00 +0530 Tue, 13 Mar 2012 12:33:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106214 Modvat credit under Rule 57Q was treated as available on capital goods used in cement manufacture even though they were not physically used within the factory premises. The Tribunal applied the Supreme Court's interpretation of input credit principles to capital goods credit, holding that the controlling test was whether the goods were used in or in relation to manufacture of the final product. Since such use was not denied, physical utilisation inside the factory was not regarded as a necessary condition for credit. On that basis, the capital goods credit was held admissible and the Department's challenge failed. Case-Laws Central Excise Tue, 26 Mar 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106214