https://www.taxtmi.com/caselaws?id=429363 Welding electrodes used to repair and restore liners in the manufacturing plant were held to be eligible for MODVAT credit under rule 57Q because their use was integrally connected with manufacture and the functioning of capital goods. Although the electrodes were consumable and depleted in use, that feature did not exclude credit where they were employed to keep the plant fit for continued production and to enhance the working of machinery used in manufacturing. The classification of the items as consumables was insufficient to deny credit when their functional nexus with production was established, so reversal of the credit was unsustainable. en-us Fri, 21 Oct 2022 00:00:00 +0530 Thu, 27 Oct 2022 07:48:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=429363 Welding electrodes used to repair and restore liners in the manufacturing plant were held to be eligible for MODVAT credit under rule 57Q because their use was integrally connected with manufacture and the functioning of capital goods. Although the electrodes were consumable and depleted in use, that feature did not exclude credit where they were employed to keep the plant fit for continued production and to enhance the working of machinery used in manufacturing. The classification of the items as consumables was insufficient to deny credit when their functional nexus with production was established, so reversal of the credit was unsustainable. Case-Laws Central Excise Fri, 21 Oct 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=429363