https://www.taxtmi.com/caselaws?id=258687 Railway track material installed inside a factory and used as part of the handling system for hot metal, raw materials and processed goods qualified as capital goods for MODVAT credit under Rule 57Q of the Central Excise Rules, 1944. The controlling test was whether the item was so integrally connected with manufacture that production would be commercially inexpedient without it. On that basis, the tracks were treated as inseparable from the manufacturing process of pig iron, and incidental use for other purposes did not alter their character. The authorities' contrary view was rejected for misapplying the settled test, and credit was held admissible. en-us Fri, 13 Mar 2015 00:00:00 +0530 Wed, 30 Jul 2025 17:14:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258687 Railway track material installed inside a factory and used as part of the handling system for hot metal, raw materials and processed goods qualified as capital goods for MODVAT credit under Rule 57Q of the Central Excise Rules, 1944. The controlling test was whether the item was so integrally connected with manufacture that production would be commercially inexpedient without it. On that basis, the tracks were treated as inseparable from the manufacturing process of pig iron, and incidental use for other purposes did not alter their character. The authorities' contrary view was rejected for misapplying the settled test, and credit was held admissible. Case-Laws Central Excise Fri, 13 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258687