Capital goods credit for Thermocouple Tips upheld as components or accessories of industrial furnaces under Rule 57Q.

Credit of duty on Thermocouple Tips was treated as admissible capital goods credit under Rule 57Q because, although the goods were not specifically listed in Serial No. 4, they qualified as components or accessories of industrial furnaces covered under Serial No. 3. The applicable entry was Serial No. 5 of the table annexed to Rule 57Q, which extends credit to components, spares and accessories of specified goods. On that basis, the goods were held eligible for credit.

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Issues: Whether credit of duty on Thermocouple Tips was admissible as capital goods under Rule 57Q of the Central Excise Rules, 1944.

Analysis: The goods were not specifically mentioned under Serial No. 4 of the table annexed to Rule 57Q, but the lower authorities had allowed credit under Serial No. 5, which covers components, spares and accessories of goods specified against Serial Nos. 1 to 4. Industrial furnaces were covered under Serial No. 3, and the Thermocouple Tips were used in such furnaces. On that basis, the goods were treated as eligible components or accessories and credit was allowed.

Conclusion: Credit of duty on the impugned goods was correctly allowed under Serial No. 5 of the table annexed to Rule 57Q, and the department's appeal was rejected.

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