Modvat credit eligibility for plant items and machinery parts upheld where prior appellate findings had attained finality.

Modvat credit under Rule 57Q was treated as admissible on the disputed items because the first four goods had already been covered by an earlier appellate order that had attained finality, and the Department could not reopen that position. For the steam separator and wire rolls, the lower appellate authority's unchallenged finding that they were essential parts of paper-making machinery was accepted. On both grounds, the items were regarded as eligible capital goods for Modvat credit, and the Revenue's challenge failed.

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Issues: Whether Modvat credit under Rule 57Q was admissible on chemical recovery plant items, non-alloy steel wire, mobile oil and grease, computer hardware, steam separator, and wire rolls.

Analysis: The denial of interference on the first four items followed an earlier appellate order in which Modvat credit on those goods had already been upheld, and that earlier order had attained finality after the Department's appeal was dismissed. As to steam separator and wire rolls, the lower appellate authority had found them to be essential parts of the paper-making machinery, and that finding was not challenged in the present appeal. On both counts, the goods were treated as eligible capital goods for Modvat credit under Rule 57Q.

Conclusion: Modvat credit on all the disputed items was held admissible, and the Revenue's challenge failed.

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