https://www.taxtmi.com/caselaws?id=54460 Modvat credit on capital goods cannot be denied merely because the goods were sold to a finance company and then taken back on lease, where they remained installed in the factory and continued to be used in manufacture. The finance arrangement was only a method to recover the cost of the capital goods, and the goods were not physically removed. Notification No. 27/94-C.E. (N.T.) recognised credit for capital goods acquired under lease, hire-purchase or loan arrangements from a finance company, so the denial of credit was not justified. en-us Wed, 30 Mar 2005 00:00:00 +0530 Wed, 20 Oct 2010 11:22:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54460 Modvat credit on capital goods cannot be denied merely because the goods were sold to a finance company and then taken back on lease, where they remained installed in the factory and continued to be used in manufacture. The finance arrangement was only a method to recover the cost of the capital goods, and the goods were not physically removed. Notification No. 27/94-C.E. (N.T.) recognised credit for capital goods acquired under lease, hire-purchase or loan arrangements from a finance company, so the denial of credit was not justified. Case-Laws Central Excise Wed, 30 Mar 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54460