https://www.taxtmi.com/caselaws?id=52296 Modvat credit extends to goods having a direct functional nexus with manufacturing under the Central Excise Rules, 1944. Cement used to lay machinery foundations qualified under the broad scope of capital goods, as it supported setting up and housing plant and machinery. Chemical formulations used in the water distribution and cooling system of a sponge iron plant qualified as manufacturing inputs, even if not capital goods, because they were essential to the process. H.S.S. hand taps used with lathe machines to cut metal and manufacture plant components also qualified for credit based on their functional use. The disallowance of credit and penalty were set aside. 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 extends to goods having a direct functional nexus with manufacturing under the Central Excise Rules, 1944. Cement used to lay machinery foundations qualified under the broad scope of capital goods, as it supported setting up and housing plant and machinery. Chemical formulations used in the water distribution and cooling system of a sponge iron plant qualified as manufacturing inputs, even if not capital goods, because they were essential to the process. H.S.S. hand taps used with lathe machines to cut metal and manufacture plant components also qualified for credit based on their functional use. The disallowance of credit and penalty were set aside. Case-Laws Central Excise Fri, 29 Aug 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52296