https://www.taxtmi.com/caselaws?id=109759 Modvat credit under Rule 57Q was available for capital goods used after the cotton carding/combing stage in the manufacture of dutiable cotton yarn. Draw frame and ring frame machinery, and the ring frame components, were treated as eligible because they operated only after the exempt intermediate stage and were not used in producing the intermediate product. Sapcostat oil was also allowed as credit, with the declaration delay already condoned. The operative principle is that capital goods used in the manufacture of final dutiable goods, and not in the exempt intermediate process, qualify for Modvat credit. en-us Wed, 13 Nov 2002 00:00:00 +0530 Fri, 18 May 2012 16:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109759 Modvat credit under Rule 57Q was available for capital goods used after the cotton carding/combing stage in the manufacture of dutiable cotton yarn. Draw frame and ring frame machinery, and the ring frame components, were treated as eligible because they operated only after the exempt intermediate stage and were not used in producing the intermediate product. Sapcostat oil was also allowed as credit, with the declaration delay already condoned. The operative principle is that capital goods used in the manufacture of final dutiable goods, and not in the exempt intermediate process, qualify for Modvat credit. Case-Laws Central Excise Wed, 13 Nov 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109759