https://www.taxtmi.com/caselaws?id=110006 Modvat credit was admissible on PVC cables used in relation to manufacture, as such items qualified as capital goods under Rule 57Q and the governing Supreme Court view supported credit. Credit on a data processing machine used only for designing and drawing was denied, because such use did not amount to manufacture or production and lacked the required nexus with eligible capital goods. Penalty was set aside, as the dispute arose from a bona fide interpretation of a newly introduced Modvat scheme. The order was therefore modified to allow credit on PVC cables, refuse credit on the machine, and delete the penalty. en-us Mon, 15 Sep 2003 00:00:00 +0530 Fri, 13 Apr 2012 13:21:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110006 Modvat credit was admissible on PVC cables used in relation to manufacture, as such items qualified as capital goods under Rule 57Q and the governing Supreme Court view supported credit. Credit on a data processing machine used only for designing and drawing was denied, because such use did not amount to manufacture or production and lacked the required nexus with eligible capital goods. Penalty was set aside, as the dispute arose from a bona fide interpretation of a newly introduced Modvat scheme. The order was therefore modified to allow credit on PVC cables, refuse credit on the machine, and delete the penalty. Case-Laws Central Excise Mon, 15 Sep 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110006