2011 (8) TMI 399 - MADRAS HIGH COURT

Modvat credit - Capital goods - Rule 57Q - Apex Court in the judgment reported in 2010 -TMI - 76691 - SUPREME COURT OF INDIA (Commissioner of Central Excise, Jaipur v. Rajasthan Spinning & Weaving Mills Ltd.). In paragraphs 12 and 13, while applying the "user test" and following the Jawahar Mills's case, the Apex court has held that even though steel plates and M.S.Channels used in the fabrication of chimney would fall within the ambit of "capital goods". - Held that: the Court should apply liberal test to find out as to whether a particular item would fall under the definition of "capital goods" or not - Decided in favor of the assessee