https://www.taxtmi.com/caselaws?id=52574 Modvat credit is unavailable on construction materials used merely for setting up a plant, such as M.S. plates, bars, Tor steel, cement, angles, channels, steel panels, plates and sheets, because they do not form part of the machinery or directly support production. By contrast, goods used as capital goods or as machinery-related components remain eligible for credit, including items such as PVC eliminators, battery charger, cables, decofoam, BOPP self adhesive tape, compressor and indicators, even where a later notification specifically mentions indicators. Penalty exposure may be reduced where credit was taken under a bona fide belief and the higher penalty is not justified. en-us Wed, 24 Sep 2003 00:00:00 +0530 Wed, 06 Oct 2010 15:58:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52574 Modvat credit is unavailable on construction materials used merely for setting up a plant, such as M.S. plates, bars, Tor steel, cement, angles, channels, steel panels, plates and sheets, because they do not form part of the machinery or directly support production. By contrast, goods used as capital goods or as machinery-related components remain eligible for credit, including items such as PVC eliminators, battery charger, cables, decofoam, BOPP self adhesive tape, compressor and indicators, even where a later notification specifically mentions indicators. Penalty exposure may be reduced where credit was taken under a bona fide belief and the higher penalty is not justified. Case-Laws Central Excise Wed, 24 Sep 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52574