Modvat credit barred for Loadall where manufacturer's classification under Heading 84.29 excluded it from capital goods eligibility.

Modvat credit on a Loadall was held inadmissible because the goods had already been classified at the manufacturer's end under Heading 84.29, which Rule 57Q excluded from the definition of capital goods. The receiver could not reopen or alter that classification when claiming credit, and the appellate authority went beyond its jurisdiction by re-determining eligibility on the buyer's case instead of accepting the manufacturer's classification. Revenue's appeal succeeded on that basis.

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Issues: Whether Modvat credit was admissible on "Loadall" when the goods were classified at the manufacturer's end under Heading 84.29 and Rule 57Q excluded that heading from the definition of capital goods.

Analysis: The goods had been assessed by the jurisdictional excise authorities at the manufacturer's end under Heading 84.29. Since Rule 57Q excluded goods falling under that heading from capital goods, the receiver could not re-open or alter the manufacturer's classification at the stage of claiming Modvat credit. The appellate authority exceeded its jurisdiction by re-determining the classification on the basis of the buyer's case for eligibility, instead of accepting the classification already applied at the manufacturer's end.

Conclusion: Modvat credit was not admissible, and the Revenue's appeal succeeded.

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