https://www.taxtmi.com/caselaws?id=52604 Under Rule 57Q of the Central Excise Rules, 1944, Silo Encasing and the Dust Collection System were treated as capital goods because they formed an integral part of production and pollution control in sponge iron manufacture, so Modvat credit was available. By contrast, Pint Oil Liner, used only for repair and maintenance, lacked the required nexus with manufacture and therefore did not qualify as input or capital goods for Modvat credit. The stated principle is that equipment directly connected with the manufacturing or pollution-control process may qualify, while maintenance materials do not. en-us Tue, 14 Oct 2003 00:00:00 +0530 Wed, 06 Oct 2010 17:59:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52604 Under Rule 57Q of the Central Excise Rules, 1944, Silo Encasing and the Dust Collection System were treated as capital goods because they formed an integral part of production and pollution control in sponge iron manufacture, so Modvat credit was available. By contrast, Pint Oil Liner, used only for repair and maintenance, lacked the required nexus with manufacture and therefore did not qualify as input or capital goods for Modvat credit. The stated principle is that equipment directly connected with the manufacturing or pollution-control process may qualify, while maintenance materials do not. Case-Laws Central Excise Tue, 14 Oct 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52604