Broad meaning of "plant" extends to durable factory cables, supporting capital goods treatment and Modvat credit.

Electric cables used in a factory may qualify as "plant" for Modvat purposes if they are durable articles employed in carrying on the business and are not merely stock-in-trade. The broad judicial meaning of "plant" was applied, extending beyond machines or machinery to articles of enduring utility used in manufacturing operations. On that basis, the cables fell within Rule 57Q of the Central Excise Rules, 1944, and were eligible as capital goods for Modvat credit. The reference was accordingly answered in favour of the assessee.

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Issues: Whether electric cables used in the assessee's factory qualified as "plant" and therefore as capital goods under Rule 57Q of the Central Excise Rules, 1944, so as to entitle the assessee to Modvat credit.

Analysis: The meaning of "plant" was applied in the broad sense recognised by earlier authority, namely that it includes any apparatus or article used by a businessman for carrying on the business, provided it has sufficient durability and is not merely stock-in-trade. The Court treated the question as already concluded by the settled definition of "plant", even though the earlier authorities arose under the income-tax enactments. On that basis, electric cables used in the factory for business purposes were held to be articles of enduring utility and not excluded from the scope of "plant" merely because they were not themselves machines or machinery.

Conclusion: Electric cables used in the assessee's manufacturing activity were held to be "plant" within Rule 57Q, and the Modvat credit was rightly allowed.

Final Conclusion: The reference was rejected because the legal question stood answered in favour of the assessee, leaving no further issue requiring adjudication.

Ratio Decidendi: An article or object used with sufficient durability in the course of business may constitute "plant" for the purpose of capital goods eligibility, even if it is not a machine or machinery.

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