Modvat credit on fabricated tanks and fuel transport vehicle found outside capital goods definition; pre-deposit waiver refused.

Fabricated steel tanks classified under sub-heading 7311.00 were held not to fall within the definition of capital goods under Rule 57Q of the Central Excise Rules, 1944. The connected motor vehicle, received under Heading 8704.20, was also not prima facie accepted as an integral part or component of factory machinery because a vehicle used to transport propane fuel did not appear to form part of the manufacturing equipment. On that basis, no prima facie case for waiver of pre-deposit was made out, and the full demanded amount was directed to be deposited.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit in respect of Modvat credit availed on fabricated steel tanks and the connected motor vehicle under Rule 57Q of the Central Excise Rules, 1944.

Analysis: The fabricated steel tanks were classified under sub-heading 7311.00 and were not covered by the definition of capital goods under Rule 57Q. The motor vehicle and tanks were received in the factory under Heading 8704.20. The claim that the motor vehicle formed an integral part or component of factory machinery was not accepted at the stay stage, since a vehicle used for transporting propane fuel could not prima facie be treated as part of the manufacturing machinery.

Conclusion: No prima facie case for waiver of pre-deposit was made out, and the appellants were directed to deposit the entire demanded amount.

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