https://www.taxtmi.com/caselaws?id=52296 Modvat credit was treated as admissible on cement used to lay the foundation for machinery, because Rule 57Q was applied broadly to items used in setting up and housing plant and machinery. Chemical formulations used in the water treatment, distribution and cooling system of a sponge iron plant were also eligible, since they satisfied the input test under Rule 57A as materials used in the manufacturing process. H.S.S. hand taps used with lathe machines to cut excess metal and manufacture components were likewise allowed on the basis of their direct functional nexus with production. The note states that broad construction of capital goods and functional use in manufacture justified credit on all disputed items. en-us Fri, 29 Aug 2003 00:00:00 +0530 Tue, 05 Oct 2010 10:40:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52296 Modvat credit was treated as admissible on cement used to lay the foundation for machinery, because Rule 57Q was applied broadly to items used in setting up and housing plant and machinery. Chemical formulations used in the water treatment, distribution and cooling system of a sponge iron plant were also eligible, since they satisfied the input test under Rule 57A as materials used in the manufacturing process. H.S.S. hand taps used with lathe machines to cut excess metal and manufacture components were likewise allowed on the basis of their direct functional nexus with production. The note states that broad construction of capital goods and functional use in manufacture justified credit on all disputed items. Case-Laws Central Excise Fri, 29 Aug 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52296