https://www.taxtmi.com/caselaws?id=107504 Capital goods credit was treated as admissible for an indicating flow relay and a seal used in a rolling mill because both items had a direct functional role in the manufacturing process. The indicating flow relay monitored acid concentration and flow according to operating parameters, while the seal formed part of the valve arrangement in the pneumatic cylinder controlling oil flow to the rolling equipment. Relying on the functional use of the items and supporting circular and Tribunal precedent, the denial of credit and the associated penalty were held unsustainable. en-us Thu, 03 Apr 2003 00:00:00 +0530 Thu, 22 Mar 2012 18:53:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=107504 Capital goods credit was treated as admissible for an indicating flow relay and a seal used in a rolling mill because both items had a direct functional role in the manufacturing process. The indicating flow relay monitored acid concentration and flow according to operating parameters, while the seal formed part of the valve arrangement in the pneumatic cylinder controlling oil flow to the rolling equipment. Relying on the functional use of the items and supporting circular and Tribunal precedent, the denial of credit and the associated penalty were held unsustainable. Case-Laws Central Excise Thu, 03 Apr 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=107504