Modvat credit on capital goods accepted for manufacturing components and testing equipment, except an undeclared meter.

Modvat credit was held admissible on disputed capital goods used as components of manufacturing equipment, testing instruments, safety equipment and allied fittings, because they fell within the eligible scope of capital goods as understood in the Supreme Court ruling. Credit was not pressed for the Auto Ranging Conductivity Meter, since it was not covered by the declaration requirement under Rule 57G of the Central Excise Rules. The assessee succeeded to that extent.

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Issues: Whether Modvat credit was admissible on the disputed items of capital goods, and whether the item not included in the declaration could still qualify for credit.

Analysis: The disputed articles were described as components of manufacturing equipment, testing instruments, safety equipment, and allied fittings. In light of the Supreme Court ruling on the scope of capital goods, such items fell within the eligible category for Modvat credit. One item, namely the Auto Ranging Conductivity Meter, was not pressed because the declaration requirement was not satisfied under Rule 57G of the Central Excise Rules.

Conclusion: Modvat credit was held admissible on the disputed items other than the unpressed item, and the assessee succeeded to that extent.

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