Modvat credit on structural beams denied where the beams were used for civil construction of a machinery platform.

Structural beams used to construct a platform for installing machinery were held not to qualify as capital goods for Modvat credit under Rule 57Q. The determining factor was that the beams were used in a civil construction: the platform facilitated installation of machinery, but it was not itself part of the machinery or a component of a conveying system. Decisions allowing credit on items forming part of machinery were distinguished on that basis. Credit on the beams was therefore disallowed.

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Issues: Whether structural beams used for construction of a platform for installation of machinery qualified as capital goods and were eligible for Modvat credit under Rule 57Q.

Analysis: The structural beams were used to raise a platform, and the platform was a civil construction. A platform constructed to facilitate installation of machinery is not itself part of the machinery, and goods used for such civil construction do not fall within the ambit of capital goods under Rule 57Q. The cited decisions allowing credit on items forming part of machinery or conveying systems were distinguished on the ground that, in the present case, the beams were used for a civil structure and not as components of machinery.

Conclusion: The beams were not eligible for Modvat credit, and the disallowance of credit was upheld.

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