https://www.taxtmi.com/caselaws?id=125985 Modvat credit was held admissible on a personal computer used in the factory for designing and drawing components, storing manufacturing process details, and transmitting instructions to CNC machines. Rule 57Q of the Central Excise Rules, 1994 was construed broadly to cover capital goods used by the manufacturer in the factory, and computers were not excluded from its scope. Applying the principle that capital goods used for producing or processing goods, or for bringing about changes in substances for manufacture, fall within the provision, the Tribunal found a direct functional nexus between the computer and manufacturing activity. The denial of credit was therefore unsustainable. en-us Wed, 21 Jan 2009 00:00:00 +0530 Thu, 01 Nov 2012 11:11:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=125985 Modvat credit was held admissible on a personal computer used in the factory for designing and drawing components, storing manufacturing process details, and transmitting instructions to CNC machines. Rule 57Q of the Central Excise Rules, 1994 was construed broadly to cover capital goods used by the manufacturer in the factory, and computers were not excluded from its scope. Applying the principle that capital goods used for producing or processing goods, or for bringing about changes in substances for manufacture, fall within the provision, the Tribunal found a direct functional nexus between the computer and manufacturing activity. The denial of credit was therefore unsustainable. Case-Laws Central Excise Wed, 21 Jan 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=125985