https://www.taxtmi.com/caselaws?id=114180 Modvat credit on inputs used in manufacturing an electric arc furnace was held admissible because the show cause notices proceeded only on the basis that the items were used in making the furnace, while credit was denied on the different ground that the furnace was immovable property and not goods. The adjudicating authority could not sustain denial on a basis not alleged in the notices. The furnace was also treated as capital goods under Rule 57Q, and goods fixed to the earth could still qualify if used to produce or process goods. Credit on inputs used in the manufacture of capital goods was further recognised under Rule 57D(2), so the demand failed. en-us Tue, 12 Nov 2002 00:00:00 +0530 Fri, 11 May 2012 18:51:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=114180 Modvat credit on inputs used in manufacturing an electric arc furnace was held admissible because the show cause notices proceeded only on the basis that the items were used in making the furnace, while credit was denied on the different ground that the furnace was immovable property and not goods. The adjudicating authority could not sustain denial on a basis not alleged in the notices. The furnace was also treated as capital goods under Rule 57Q, and goods fixed to the earth could still qualify if used to produce or process goods. Credit on inputs used in the manufacture of capital goods was further recognised under Rule 57D(2), so the demand failed. Case-Laws Central Excise Tue, 12 Nov 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=114180