https://www.taxtmi.com/caselaws?id=30695 Modvat credit on capital goods was admissible where machinery was received in the factory and used to manufacture the final product, even though it had been purchased by another concern and was not owned by the user. Rule 2(b) of the Cenvat Credit Rules, 2002 ties capital goods to their use in the factory, and Rule 3 allows credit on duty paid capital goods received in that factory; ownership is not a ative factor. Use of the machine for job work and the fact that the first product was an intermediate product did not defeat credit, because the intermediate product was further used to make dutiable final products. Disallowance of credit was therefore unjustified. en-us Fri, 16 May 2008 00:00:00 +0530 Tue, 16 Sep 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=30695 Modvat credit on capital goods was admissible where machinery was received in the factory and used to manufacture the final product, even though it had been purchased by another concern and was not owned by the user. Rule 2(b) of the Cenvat Credit Rules, 2002 ties capital goods to their use in the factory, and Rule 3 allows credit on duty paid capital goods received in that factory; ownership is not a ative factor. Use of the machine for job work and the fact that the first product was an intermediate product did not defeat credit, because the intermediate product was further used to make dutiable final products. Disallowance of credit was therefore unjustified. Case-Laws Central Excise Fri, 16 May 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=30695