Modvat credit for pressure transmitter denied where capital goods use under Rule 57Q was not proved.

Modvat credit under Rule 57Q was denied for a pressure transmitter because it was not established to be capital goods. The classification under Heading 90.26/90.33 showed the item to be a measuring or checking instrument or part, not equipment used for controlling current in an electrical panel. The claimed use was not accepted, and the actual use of the transmitter was not proved. On that basis, the instrument did not satisfy the definition of capital goods for credit eligibility, and the denial of credit was upheld.

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Issues: Whether pressure transmitter classified under Heading 90.26/90.33 was eligible for Modvat credit as capital goods under Rule 57Q.

Analysis: The claim for credit depended on the item falling within the definition of capital goods under Rule 57Q during the relevant period. The stated use of the pressure transmitter showed it to be classifiable under Heading 90.26/90.33, which covers measuring or checking instruments and their parts, rather than equipment used for controlling current in an electrical panel. The stated description of use was not accepted, and the actual use of the transmitter was not proved.

Conclusion: The pressure transmitter was not established to be capital goods eligible for Modvat credit, and the denial of credit was upheld.

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