https://www.taxtmi.com/caselaws?id=50192 Capital goods need not directly participate in the manufacture of final products to qualify for Modvat credit if they are used in the manufacturing establishment for functions connected with production efficiency. Applying the principle in Jawahar Mills and the Supreme Court authorities cited there, the Tribunal treated an energy-saving microprocessor system used to improve factory power consumption as eligible capital goods. The system was therefore allowed Modvat credit, since it supported and facilitated manufacture even though it did not itself perform the production process. en-us Tue, 25 Jan 2000 00:00:00 +0530 Fri, 20 Aug 2010 12:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=50192 Capital goods need not directly participate in the manufacture of final products to qualify for Modvat credit if they are used in the manufacturing establishment for functions connected with production efficiency. Applying the principle in Jawahar Mills and the Supreme Court authorities cited there, the Tribunal treated an energy-saving microprocessor system used to improve factory power consumption as eligible capital goods. The system was therefore allowed Modvat credit, since it supported and facilitated manufacture even though it did not itself perform the production process. Case-Laws Central Excise Tue, 25 Jan 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=50192