https://www.taxtmi.com/caselaws?id=354895 HR coils used to fabricate pipelines in a power plant's condenser cooling system were treated as capital goods for Modvat credit because they had a direct functional nexus with the plant's machinery. The Court applied the principle that components essential to the effective and smooth working of machinery form part of the machinery itself, and held that the coils were not mere general-purpose materials. On that basis, the assessee was entitled to credit under Rule 57Q of the Central Excise Rules, 1944, and the Revenue's objection failed. en-us Wed, 12 Jul 2017 00:00:00 +0530 Wed, 07 Feb 2018 08:05:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=354895 HR coils used to fabricate pipelines in a power plant's condenser cooling system were treated as capital goods for Modvat credit because they had a direct functional nexus with the plant's machinery. The Court applied the principle that components essential to the effective and smooth working of machinery form part of the machinery itself, and held that the coils were not mere general-purpose materials. On that basis, the assessee was entitled to credit under Rule 57Q of the Central Excise Rules, 1944, and the Revenue's objection failed. Case-Laws Central Excise Wed, 12 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=354895