https://www.taxtmi.com/caselaws?id=33149 Rule 57Q of the Central Excise Rules, 1944 was construed broadly to determine whether items used in a factory qualified as capital goods for Modvat credit. The Court applied a functional test, holding that machines, machinery, plant, equipment, apparatus, tools, appliances, and their components, spare parts or accessories may qualify when they have a direct nexus with the manufacturing process and support or operate the production setup. On that basis, copper/aluminium conductor, impeller, bulldozer and cold frame sections used in the factory were treated as capital goods, and Modvat credit was upheld. en-us Fri, 05 Sep 2008 00:00:00 +0530 Fri, 24 Apr 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33149 Rule 57Q of the Central Excise Rules, 1944 was construed broadly to determine whether items used in a factory qualified as capital goods for Modvat credit. The Court applied a functional test, holding that machines, machinery, plant, equipment, apparatus, tools, appliances, and their components, spare parts or accessories may qualify when they have a direct nexus with the manufacturing process and support or operate the production setup. On that basis, copper/aluminium conductor, impeller, bulldozer and cold frame sections used in the factory were treated as capital goods, and Modvat credit was upheld. Case-Laws Central Excise Fri, 05 Sep 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33149