Modvat credit on D.G. set components was allowed where the goods qualified as capital goods and duty-paid invoices were in the assessee's name.

Modvat credit was treated as admissible on D.G. set components received under invoices issued in the assessee's name and used for erection and commissioning by another entity, because the components fell within the definition of capital goods under Rule 57Q of the Central Excise Rules, 1944 and duty had been paid on the supporting documents. The Tribunal relied on prior decisions allowing credit on such components and noted that no contrary authority was shown. On that basis, the issue did not give rise to a substantial question of law, and credit was held admissible to the assessee.

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Issues: Whether modvat credit was admissible on components of a D.G. set received by the assessee under invoices issued in its name, where the components were used for erection and commissioning of the D.G. set by another entity.

Analysis: The components were found to fall within the definition of capital goods under Rule 57Q of the Central Excise Rules, 1944, and the duty had been paid on the documents drawn in the assessee's favour. The Tribunal followed prior decisions holding that credit was available on such components, and no contrary authority was shown. In the absence of any conflicting judgment, the matter did not give rise to a substantial question of law.

Conclusion: Modvat credit was held to be admissible to the assessee on the D.G. set components.

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