Rule 57Q capital goods credit extends to component parts of specified machinery despite separate tariff classification.

Rule 57Q credit was available for U.V. lamp, fluorescent tube and U.V. radiating tube used as parts of a printing machine, even though their individual tariff classification might otherwise fall outside the specified heading. The Tribunal relied on the Board's clarification dated 2-12-1996 that components, parts, spares and accessories of specified goods qualify for credit irrespective of classification, and treated the printing machine as specified capital goods whose component parts also met the rule. On that basis, the earlier contrary view was held incorrect in law, the impugned order was set aside, and Modvat credit was granted to the assessee.

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Issues: Whether credit under Rule 57Q was admissible on U.V. lamp, fluorescent tube and U.V. radiating tube used as parts of a printing machine, notwithstanding their individual classification.

Analysis: The dispute turned on the scope of capital goods under Rule 57Q of the Central Excise Rules. The Tribunal noted that the earlier view denying credit had not considered the Board's clarification dated 2-12-1996, which stated that components, parts, spares and accessories of specified goods are eligible irrespective of classification. Since the printing machine was specified goods, its component parts also qualified for credit. The contrary earlier decision was held to be incorrect in law.

Conclusion: Credit was admissible on the disputed goods.

Final Conclusion: The impugned order was set aside and the appeals were allowed, with Modvat credit granted to the assessee.

Ratio Decidendi: Components, parts, spares and accessories of specified capital goods are eligible for credit under Rule 57Q even if their individual tariff classification would otherwise fall outside the specified heading.

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