https://www.taxtmi.com/caselaws?id=289202 Humidification plants installed in a spinning mill were examined under Rule 57Q of the Central Excise Rules, 1944 to determine whether they qualified as capital goods for Modvat credit. The applicable test was whether the machinery had a direct nexus with processing or production and participated in the manufacturing stream by bringing about a change in the substance of the goods or inputs. Mere technical necessity for maintaining ambient conditions and yarn quality was held insufficient. On that basis, the humidification plant was treated as providing atmosphere rather than directly processing goods, and it was held not to fall within capital goods under Rule 57Q on the facts considered. en-us Mon, 02 Jun 1997 00:00:00 +0530 Mon, 20 Jul 2020 11:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289202 Humidification plants installed in a spinning mill were examined under Rule 57Q of the Central Excise Rules, 1944 to determine whether they qualified as capital goods for Modvat credit. The applicable test was whether the machinery had a direct nexus with processing or production and participated in the manufacturing stream by bringing about a change in the substance of the goods or inputs. Mere technical necessity for maintaining ambient conditions and yarn quality was held insufficient. On that basis, the humidification plant was treated as providing atmosphere rather than directly processing goods, and it was held not to fall within capital goods under Rule 57Q on the facts considered. Case-Laws Central Excise Mon, 02 Jun 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289202