https://www.taxtmi.com/caselaws?id=261704 Capital goods used to erect a power plant qualified for Modvat Credit under Rule 57Q where the electricity generated was substantially captively consumed in the assessee's factory for manufacture of final products, with only a small surplus sold outside. The governing principle applied was that inputs or capital goods used to generate electricity captively consumed in manufacturing are used "in relation to manufacture," supporting credit eligibility. The Revenue's objection would have had force only if the electricity were not in substance captively consumed. Modvat Credit was therefore admissible. en-us Mon, 24 Nov 2014 00:00:00 +0530 Mon, 20 Jul 2015 09:47:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=261704 Capital goods used to erect a power plant qualified for Modvat Credit under Rule 57Q where the electricity generated was substantially captively consumed in the assessee's factory for manufacture of final products, with only a small surplus sold outside. The governing principle applied was that inputs or capital goods used to generate electricity captively consumed in manufacturing are used "in relation to manufacture," supporting credit eligibility. The Revenue's objection would have had force only if the electricity were not in substance captively consumed. Modvat Credit was therefore admissible. Case-Laws Central Excise Mon, 24 Nov 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=261704