Capital goods classification for a dryer secured Modvat credit after Heading 84.21 was accepted over Heading 73.11.

Rotary conical jacketed cylindrical dryer was classified under Heading 84.21 rather than Heading 73.11, bringing it within the scope of capital goods for Modvat credit under Rule 57Q of the Central Excise Rules, 1944. On that classification, the machinery qualified for credit and the denial of Modvat credit on the dryer was set aside. The separate claim relating to the batch controller was not pursued.

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Issues: Whether the goods described as a rotary conical jacketed cylindrical dryer were classifiable under Heading 84.21 so as to qualify for Modvat credit as capital goods under Rule 57Q of the Central Excise Rules, 1944.

Analysis: The disputed item was held to be more appropriately classifiable under Heading 84.21 than under Heading 73.11. On that basis, it was treated as machinery falling within the scope of capital goods for the purpose of credit under Rule 57Q. The separate claim relating to the batch controller was not pursued.

Conclusion: The assessee was entitled to Modvat credit on the rotary conical jacketed cylindrical dryer, and the denial of credit on that item was set aside.

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