Modvat credit exclusion for air-conditioning spares barred relief where the rule expressly excluded such components.

Modvat credit under Rule 57Q was denied for air-conditioning plant spares, components and accessories because the rule expressly excluded air-conditioning and refrigeration accessories, spares and components from the definition of capital goods during the relevant period. The earlier precedent relied on by the lower authority concerned spare parts and accessories used in machines installed before 1-3-1994 and was held inapplicable to this distinct factual and statutory setting. Where the governing rule contains an express exclusion, credit cannot be allowed by extending a different decision beyond its context. The Revenue's objection on admissibility therefore succeeded.

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Issues: Whether Modvat credit under Rule 57Q was admissible on air-conditioning plant spares, components and accessories in the face of the exclusion of air-conditioning and refrigeration accessories, spares and components from the definition of capital goods.

Analysis: The allowance of credit by the lower authority rested on a decision concerning spare parts and accessories used in machines installed before 1-3-1994. That reasoning was held inapplicable because the relevant rule specifically excluded accessories, spares and components of air-conditioning and refrigeration from the ambit of capital goods during the material period. Where the rule itself contained an express exclusion, credit could not be granted by relying on a different precedent dealing with a distinct factual setting.

Conclusion: Modvat credit on air-conditioning plant spares, components and accessories was not admissible, and the Revenue succeeded on this issue.

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