Modvat credit on capital goods under Rule 57Q extended to plant machinery parts, but Malic Resins were excluded.

Modvat credit as capital goods under Rule 57Q was treated as admissible for electric wires and cables, hubs and blades, switch gear, and HRC fuses because they were identifiable as parts, equipment or apparatus of plant and machinery. Malic Resins were not placed on the same footing, as no supporting decision was shown to bring them within the capital goods definition, and they were excluded from relief. The note therefore distinguishes between items integrally connected with plant and machinery and a material not sufficiently covered by precedent for capital goods treatment.

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Issues: Whether Modvat credit as capital goods was admissible on the disputed items, namely Malic Resins, electric wires and cables, hubs and blades, switch gear, and HRC fuses under Rule 57Q.

Analysis: The items, other than Malic Resins, were found to be identifiable as parts, equipment or apparatus of plant and machinery. The Tribunal accepted the contention that electric wires and cables, hubs and blades, switch gear and HRC fuses fell within the scope of capital goods for the purpose of Modvat credit under Rule 57Q. Malic Resins were not shown to be specifically covered by any supporting decision and were not treated on the same footing as the other items.

Conclusion: Modvat credit was admissible on all the disputed items except Malic Resins, which were excluded from the relief.

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