Modvat credit on industrial gratings allowed where they functioned as support structures within the manufacturing setup.

Gratings used as part of industrial flooring and as support structures for access to reaction and distillation kettles were treated as capital goods eligible for Modvat credit under Rule 57Q. The Tribunal considered their functional role in the manufacturing setup, noting that items forming part of the production arrangement and enabling operation of process equipment can qualify where earlier decisions have recognised similar supporting steel structures as capital goods. The Revenue's objection was rejected and credit was allowed.

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Issues: Whether gratings used as a base for industrial flooring and access to reaction vessels qualified as capital goods eligible for Modvat credit under Rule 57Q.

Analysis: The gratings were found to be used in the manufacturing setup as part of the industrial flooring and as support for reaction and distillation kettles, enabling access for operations. The Tribunal relied on earlier decisions recognising that supporting steel structures and similar items used in the manufacture process can qualify as capital goods for Modvat credit.

Conclusion: The gratings were held to be capital goods eligible for Modvat credit, and the Revenue's objection was rejected.

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