Capital goods credit denied for vulcanising press used in repair work and not in manufacturing or processing goods.

A cement rubber vulcanising press did not qualify as capital goods under Rule 57Q because it was not shown to be used for producing or processing goods or for bringing about a change in any substance used in manufacture. Cement used in the foundation of machinery was treated as not forming part of the machinery or equipment itself, and the press was used only for repairing or forming the covering of a conveyor belt used to transport raw material. On that basis, credit was rightly denied.

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Issues: Whether cement rubber vulcanising press was eligible as capital goods under Rule 57Q for credit.

Analysis: The disputed items were not shown to be used for producing or processing goods or for bringing about a change in any substance used in manufacture. Cement used in the foundation of machinery was held not to form part of the machinery or equipment itself. The vulcanising press was used for repairing or forming the covering of a conveyor belt used for transporting raw material, and such use in repair of factory machinery did not satisfy the requirement of capital goods under Rule 57Q.

Conclusion: The credit was rightly denied and the appeal failed.

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