https://www.taxtmi.com/caselaws?id=108175 Rule 57Q was construed broadly to give the term "capital goods" a beneficial, functional meaning, covering plant, machinery, tools, appliances, parts, components and accessories used in manufacture of final products. The provision was not confined to items that directly bring about a change in substance; functional use in the manufacturing process was sufficient. Earlier Larger Bench rulings and the Supreme Court's affirmation were followed, and later notifications were treated as not affecting the relevant period. On that basis, the disputed items were held to qualify as capital goods and denial of Modvat credit was unsustainable. en-us Mon, 03 Sep 2001 00:00:00 +0530 Fri, 30 Mar 2012 13:56:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108175 Rule 57Q was construed broadly to give the term "capital goods" a beneficial, functional meaning, covering plant, machinery, tools, appliances, parts, components and accessories used in manufacture of final products. The provision was not confined to items that directly bring about a change in substance; functional use in the manufacturing process was sufficient. Earlier Larger Bench rulings and the Supreme Court's affirmation were followed, and later notifications were treated as not affecting the relevant period. On that basis, the disputed items were held to qualify as capital goods and denial of Modvat credit was unsustainable. Case-Laws Central Excise Mon, 03 Sep 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108175