Modvat credit for Chapter 73 M.S. Plates denied where goods were not specifically covered as capital goods under Rule 57Q.

M.S. Plates classified under Chapter 73 of the Central Excise Tariff were not eligible for Modvat credit as capital goods under Rule 57Q merely because they were used in tanks said to form part of capital goods. The applicable provision allowed credit only for specified capital goods used in the factory, and Chapter 73 classification by itself did not bring the goods within that category. The claim for Modvat credit was therefore rejected, and the denial of credit was upheld.

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Issues: Whether M.S. Plates classifiable under Chapter 73 of the Central Excise Tariff were eligible for Modvat credit as capital goods under Rule 57Q.

Analysis: The relevant period was January 1999 to February 1999. Credit was claimed on M.S. Plates used in tanks said to be part of capital goods. The applicable rule allowed credit only for specified capital goods used in the factory. Goods falling under Chapter 73 were not, by that classification alone, covered within the specified category of capital goods for the purpose of Rule 57Q.

Conclusion: The denial of Modvat credit on M.S. Plates was and the claim was rejected.

Ratio Decidendi: Goods classified under Chapter 73 of the Central Excise Tariff do not qualify as capital goods unless they are specifically covered by the applicable Modvat provision.

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