https://www.taxtmi.com/caselaws?id=115129 Modvat credit under Rule 57Q was held inadmissible because the machine was not used in the manufacture of goods; it was merely dismantled to study its parts and components for making similar machines. That activity did not satisfy the statutory requirement of use as capital goods in manufacture, so denial of credit was upheld. The penalty, however, was considered excessive on the facts and was reduced to Rs. 25,000. en-us Mon, 28 Mar 2005 00:00:00 +0530 Thu, 24 May 2012 10:45:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=115129 Modvat credit under Rule 57Q was held inadmissible because the machine was not used in the manufacture of goods; it was merely dismantled to study its parts and components for making similar machines. That activity did not satisfy the statutory requirement of use as capital goods in manufacture, so denial of credit was upheld. The penalty, however, was considered excessive on the facts and was reduced to Rs. 25,000. Case-Laws Central Excise Mon, 28 Mar 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=115129