Heading 84.80 classification supports capital goods credit for imported wood patterns under Modvat rules.

Imported wood patterns were treated as classifiable under Heading 84.80, which covers moulding patterns, and not excluded merely because a Chapter 44 classification was also suggested. Since Chapter 84 falls within Section XVI and goods under Heading 84.80 were covered as capital goods under Rule 57Q during the relevant period, CVD credit was admissible. The Revenue's objection based on Chapter 44 classification was rejected, and Modvat credit to the assessee was sustained.

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Issues: Whether the imported wood pattern was classifiable under Heading 84.80 of the Central Excise Tariff Schedule and whether CVD credit was admissible as capital goods under Rule 57Q of the Central Excise Rules, 1944.

Analysis: The imported item was described in the Bill of Entry as wood pattern, but the lower appellate authority found that it was correctly classifiable under Heading 84.80, which specifically includes moulding patterns. Chapter 44 excludes goods falling under Section XVI, and Chapter 84 is within that section. Since Heading 84.80 goods were covered by the definition of capital goods under Rule 57Q as it stood during the relevant period, the denial of credit could not be sustained. The Revenue's objection based on classification under Chapter 44 was therefore rejected.

Conclusion: The credit of CVD was admissible and the Revenue's appeal failed.

Final Conclusion: The order granting Modvat credit to the assessee was sustained and the challenge by the Revenue was dismissed.

Ratio Decidendi: Where imported goods are correctly classifiable under Heading 84.80 and fall within the scope of capital goods under the applicable Modvat , CVD credit cannot be denied merely because an alternative Chapter 44 classification was suggested.

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