https://www.taxtmi.com/caselaws?id=110782 Machinery used integrally in the manufacturing and packing process can qualify as capital goods for Modvat credit under the applicable rule. One item was used for packing finished yarn so it could be marketed, and the other replaced flats in carding machines used in cotton processing for yarn manufacture. On that functional basis, both items fell within the scope of eligible capital goods. Credit was therefore admissible on both items, and the related denial of credit and penalty were unsustainable. en-us Thu, 11 Dec 2003 00:00:00 +0530 Wed, 18 Apr 2012 15:58:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110782 Machinery used integrally in the manufacturing and packing process can qualify as capital goods for Modvat credit under the applicable rule. One item was used for packing finished yarn so it could be marketed, and the other replaced flats in carding machines used in cotton processing for yarn manufacture. On that functional basis, both items fell within the scope of eligible capital goods. Credit was therefore admissible on both items, and the related denial of credit and penalty were unsustainable. Case-Laws Central Excise Thu, 11 Dec 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110782