https://www.taxtmi.com/caselaws?id=116774 Capital goods installed and used in a research laboratory within the licensed factory premises qualified for Modvat credit under Rule 57Q because they were used in the factory of the manufacturer of the final products. The stated requirement was not a direct or indirect nexus with the actual production process; use within the factory in connection with manufacturing activity was sufficient. Reliance was also placed on a departmental trade notice stating that capital goods used within the factory of production would qualify for credit even if not directly used in manufacture. On that basis, denial of Modvat credit was unsustainable. en-us Fri, 13 Jan 2006 00:00:00 +0530 Tue, 26 Mar 2024 17:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=116774 Capital goods installed and used in a research laboratory within the licensed factory premises qualified for Modvat credit under Rule 57Q because they were used in the factory of the manufacturer of the final products. The stated requirement was not a direct or indirect nexus with the actual production process; use within the factory in connection with manufacturing activity was sufficient. Reliance was also placed on a departmental trade notice stating that capital goods used within the factory of production would qualify for credit even if not directly used in manufacture. On that basis, denial of Modvat credit was unsustainable. Case-Laws Central Excise Fri, 13 Jan 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=116774