Civil foundation materials are not capital goods under Rule 57Q; pre-deposit waiver was declined.

Cement and steel structurals used only to construct the civil foundation for machinery were treated as construction materials, not as components, accessories or capital goods under Rule 57Q of the Central Excise Rules, 1944. On that prima facie view, materials used for the building or foundation did not satisfy the requirement of goods used for producing or processing; the balance of convenience favoured the Revenue. Waiver of pre-deposit was therefore declined, and the applicants were directed to freeze the disputed amount in their RG 23C account without utilisation.

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Issues: Whether cement and steel structurals used for laying the foundation for machinery and the corresponding request for waiver of pre-deposit under Rule 57Q of the Central Excise Rules, 1944 were admissible.

Analysis: The materials in dispute were used for civil work in making the foundation on which the machinery was to be erected at an elevated position. On a prima facie view, such cement and steel structurals could not be treated as components or accessories of the machinery or as capital goods themselves. They were construction materials used for the building or foundation and did not answer the requirement of materials used for producing or processing goods. The balance of convenience was, therefore, found to be in favour of the Revenue.

Conclusion: Waiver of pre-deposit was declined and the applicants were directed to freeze the disputed amount in their RG 23C account without utilisation, with stay against recovery to follow on compliance.

Ratio Decidendi: Materials used only for the civil foundation of machinery are not components or accessories of capital goods within Rule 57Q of the Central Excise Rules, 1944.

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