https://www.taxtmi.com/caselaws?id=106522 Modvat credit was upheld only where the item qualified as an input or integral component of the manufactured machinery. Credit taken on parts later admitted not to be inputs was denied, and reversal of credit on spare parts kept for an aborted export supply was held proper after manufacturing ceased. A compressor was accepted as necessary for the functioning of the glass tube forming machinery and credit was allowed, but a shrink wrapping machine was not treated as a component or input merely because it was used with the machine. Penalty was reduced in view of the overall circumstances and the limited relief granted. en-us Fri, 04 Oct 2002 00:00:00 +0530 Wed, 14 Mar 2012 15:47:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106522 Modvat credit was upheld only where the item qualified as an input or integral component of the manufactured machinery. Credit taken on parts later admitted not to be inputs was denied, and reversal of credit on spare parts kept for an aborted export supply was held proper after manufacturing ceased. A compressor was accepted as necessary for the functioning of the glass tube forming machinery and credit was allowed, but a shrink wrapping machine was not treated as a component or input merely because it was used with the machine. Penalty was reduced in view of the overall circumstances and the limited relief granted. Case-Laws Central Excise Fri, 04 Oct 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106522