Cenvat credit on surface-coating equipment denied where the item was excluded from capital goods and not part of printing machinery.

Cenvat credit on LCE supporting equipment was denied under Rule 57Q because the item was classified under Chapter Heading 84.24, which was excluded from the definition of capital goods. The challenge to that classification was not entertained as it had already attained finality. A further claim that the goods formed part of printing machinery was rejected because the item performed an independent surface-coating function and was not part of the printing machinery used to manufacture labels. The goods were therefore outside the ambit of Rule 57Q and credit was inadmissible.

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Issues: Whether Cenvat credit was admissible on LCE supporting equipment under Rule 57Q of the Central Excise Rules, 1944.

Analysis: The item was treated as falling under Chapter Heading 84.24, which stood excluded from the scope of capital goods under Rule 57Q. The challenge to that classification was not entertained because the classification had already attained finality. The alternative plea that the goods formed part of printing machinery was rejected since the item performed an independent surface-coating function and was not a part of the printing machinery used for manufacture of labels.

Conclusion: The goods were held to be outside the ambit of Rule 57Q, and the credit was held inadmissible.

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