https://www.taxtmi.com/caselaws?id=33147 Equipment used for checking conformity of manufactured goods with specifications can qualify as capital goods for Modvat credit where it has a real and functional nexus with manufacturing and quality assurance. The universal measuring machine was used to measure jigs, fixtures, gauges and finished goods to ensure that products met required design and specifications, so it was treated as used in the manufacturing process. The fact that production could occur without the machine did not exclude it from capital goods. Modvat credit was therefore admissible. en-us Wed, 12 Dec 2007 00:00:00 +0530 Fri, 24 Apr 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33147 Equipment used for checking conformity of manufactured goods with specifications can qualify as capital goods for Modvat credit where it has a real and functional nexus with manufacturing and quality assurance. The universal measuring machine was used to measure jigs, fixtures, gauges and finished goods to ensure that products met required design and specifications, so it was treated as used in the manufacturing process. The fact that production could occur without the machine did not exclude it from capital goods. Modvat credit was therefore admissible. Case-Laws Central Excise Wed, 12 Dec 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33147