https://www.taxtmi.com/caselaws?id=113648 Rule 57Q was construed broadly to allow Modvat credit on capital goods with a real functional nexus to manufacture, including machinery, plant, equipment and allied items used in producing or processing goods; items lacking that nexus or constituting building material were excluded, so credit was allowed only on the eligible items and denied on the rest. Rules 57S and 57T permitted utilisation of capital goods credit for duty on final products only where there was a relevant connection between the capital goods and the products cleared; utilisation before installation was not justified, though reversal was not insisted upon. In view of the mixed findings, the penalty was set aside. en-us Tue, 08 Sep 1998 00:00:00 +0530 Mon, 07 May 2012 14:09:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=113648 Rule 57Q was construed broadly to allow Modvat credit on capital goods with a real functional nexus to manufacture, including machinery, plant, equipment and allied items used in producing or processing goods; items lacking that nexus or constituting building material were excluded, so credit was allowed only on the eligible items and denied on the rest. Rules 57S and 57T permitted utilisation of capital goods credit for duty on final products only where there was a relevant connection between the capital goods and the products cleared; utilisation before installation was not justified, though reversal was not insisted upon. In view of the mixed findings, the penalty was set aside. Case-Laws Central Excise Tue, 08 Sep 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=113648