https://www.taxtmi.com/caselaws?id=115739 Modvat credit on alum used in a water treatment plant within the factory compound was held admissible because the plant formed an ancillary part of the paper-manufacturing process. The fact that the water treatment unit was separately located across a service road within the same premises did not require reversal of credit when the facilities were functionally connected and treated as part of the same factory arrangement for excise purposes. On that basis, the proposed duty demand, reversal of credit, and penalties under the Central Excise framework were not sustainable. en-us Tue, 28 Sep 2004 00:00:00 +0530 Fri, 01 Jun 2012 14:43:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=115739 Modvat credit on alum used in a water treatment plant within the factory compound was held admissible because the plant formed an ancillary part of the paper-manufacturing process. The fact that the water treatment unit was separately located across a service road within the same premises did not require reversal of credit when the facilities were functionally connected and treated as part of the same factory arrangement for excise purposes. On that basis, the proposed duty demand, reversal of credit, and penalties under the Central Excise framework were not sustainable. Case-Laws Central Excise Tue, 28 Sep 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=115739