https://www.taxtmi.com/caselaws?id=118687 A micro processor based system used in manufacturing was held eligible for Modvat credit as capital goods under Rule 57Q because it formed part of the manufacturing setup, controlled the production process and ensured finished goods met required specifications. Applying the settled interpretation in Jawahar Mills Ltd., as affirmed by the Supreme Court, the deciding principle was that equipment used in or in relation to manufacture and having a functional nexus with the production process can qualify as capital goods. On that basis, the Revenue's challenge was rejected and credit was allowed. en-us Fri, 05 Nov 2004 00:00:00 +0530 Thu, 05 Jul 2012 10:59:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=118687 A micro processor based system used in manufacturing was held eligible for Modvat credit as capital goods under Rule 57Q because it formed part of the manufacturing setup, controlled the production process and ensured finished goods met required specifications. Applying the settled interpretation in Jawahar Mills Ltd., as affirmed by the Supreme Court, the deciding principle was that equipment used in or in relation to manufacture and having a functional nexus with the production process can qualify as capital goods. On that basis, the Revenue's challenge was rejected and credit was allowed. Case-Laws Central Excise Fri, 05 Nov 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=118687