Statutory exclusion under Rule 57Q bars Modvat credit on chilling plant machinery falling under Chapter heading 84.15.

Rule 57Q of the Central Excise Rules, 1944 allowed Modvat credit on capital goods only within its defined scope, and its Explanation expressly excluded machinery falling under Chapter heading 84.15. Because the chilling plant parts on which credit was claimed were admitted to fall under that heading, credit was not admissible even though the plant was used and necessary in the manufacture of the final products. Decisions under an earlier or different version of Rule 57Q were distinguished, leaving the statutory exclusion as the controlling factor.

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Issues: Whether Modvat credit was admissible on parts of a chilling plant falling under Chapter heading 84.15, despite the plant being used in the manufacture of the final products.

Analysis: Rule 57Q of the Central Excise Rules, 1944 governed eligibility for Modvat credit on capital goods during the relevant period. Its Explanation defined capital goods and specifically excluded machinery falling under Chapter heading 84.15. The decisive factor was the statutory exclusion attached to the tariff heading. Once the goods on which credit was taken were admittedly covered by Chapter heading 84.15, the fact that the chilling plant was necessary for manufacture did not confer eligibility. The relied-upon decisions were distinguished as arising under an earlier and different version of Rule 57Q.

Conclusion: Modvat credit was not admissible on the parts of the chilling plant falling under Chapter heading 84.15.

Final Conclusion: The exclusion in Rule 57Q controlled the eligibility question, and necessity for manufacture could not override the express statutory bar.

Ratio Decidendi: Where a statutory definition of capital goods expressly excludes goods by tariff heading, Modvat credit cannot be allowed merely because the excluded goods are essential for manufacturing the final product.

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