Modvat credit on storage tanks denied where goods did not fall within the specified capital goods categories for the relevant period.

M.S. storage tanks under heading 7311.00 were not eligible for Modvat credit as capital goods under Rule 57Q for the relevant period because the definition then applied only to goods specifically listed in the Table. The earlier ruling relied on by the assessee was inapplicable as it concerned a different version of the capital goods definition. On that basis, the tanks were held outside the specified categories, the challenge to the credit was upheld, and the issue was decided against the assessee.

---

---

Issues: Whether M.S. storage tanks falling under heading 7311.00 were eligible for Modvat credit as capital goods under Rule 57Q of the Central Excise Rules.

Analysis: For the relevant period of December 1998, the definition of capital goods under Rule 57Q applied only to the specified goods listed in the Table. Storage tanks under heading 7311.00 did not fall within the specified categories. The earlier decision cited by the respondent was not applicable because it turned on a different version of the definition of capital goods.

Conclusion: The storage tanks were not entitled to treatment as capital goods for Modvat credit purposes, and the issue was decided against the assessee.

Final Conclusion: The appeal succeeded and the Revenue's challenge to the grant of Modvat credit was upheld.

Ratio Decidendi: Eligibility for Modvat credit depends on whether the goods strictly fall within the specified capital goods categories applicable for the relevant period.

---