Capital goods credit under Rule 57Q denied for computer hardware system not covered by specified tariff entries after recast.

After the 1-3-1997 recast of Rule 57Q, eligibility for capital goods credit depended on tariff classification and the specified entries in the rule, not merely on use in the factory. A computer hardware system classified under heading 84.71 did not fall within the entries covered by Rule 57Q for the relevant period, so capital goods credit was not admissible. The earlier Supreme Court ruling relied on by the lower authority was confined to an earlier period before the recast and did not govern the period in dispute.

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Issues: Whether capital goods credit under Rule 57Q was admissible on computer hardware system falling under heading 84.71 for the relevant period.

Analysis: The dispute turned on the position of Rule 57Q after its recast on 1-3-1997, when eligibility for capital goods credit depended on tariff classification and specified entries rather than merely on use within the factory. The computer hardware system was classified under heading 84.71, and that heading was not among the entries specified under Rule 57Q for the period in question. The earlier Supreme Court ruling relied upon by the lower authority related to a period before the recast and was not applicable to the present period.

Conclusion: Capital goods credit was not admissible on the computer hardware system for the period in dispute.

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