https://www.taxtmi.com/caselaws?id=47639 Goods installed in the humidification plant of a 100% export oriented undertaking were treated as capital goods under the exemption notification because the test was their functional nexus with manufacture, not whether they operated only as movable machinery. The false ceiling materials were said to improve plant efficiency and support production of the export product, so exemption could not be denied merely because they formed part of the installation. On that basis, the duty demand was considered unsustainable and the consequential penalty had no foundation. en-us Tue, 08 Nov 2005 00:00:00 +0530 Fri, 30 Jul 2010 10:36:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=47639 Goods installed in the humidification plant of a 100% export oriented undertaking were treated as capital goods under the exemption notification because the test was their functional nexus with manufacture, not whether they operated only as movable machinery. The false ceiling materials were said to improve plant efficiency and support production of the export product, so exemption could not be denied merely because they formed part of the installation. On that basis, the duty demand was considered unsustainable and the consequential penalty had no foundation. Case-Laws Central Excise Tue, 08 Nov 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=47639