Modvat credit under Rule 57Q extends to components and accessories, requiring reconsideration after Board clarification.

Rule 57Q permitted Modvat credit on capital goods, and the Board's clarification extended eligibility to components, spares and accessories used with those capital goods, irrespective of the parts' own classification. The denial of credit on pipes and tubes was set aside because the claim had to be reconsidered in light of that clarification, after giving the parties an opportunity of hearing. The matter was remanded for de novo decision on eligibility under the clarified scope of Rule 57Q.

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Issues: Whether Modvat credit on pipes and tubes could be considered admissible as capital goods or as components, spares or accessories under Rule 57Q, and whether the matter required reconsideration in light of the Board's clarification.

Analysis: Rule 57Q of the Central Excise Rules, 1944 allowed Modvat credit on capital goods and, by the Board's clarification, also on components, spares and accessories used with the specified capital goods. The clarification stated that such parts were eligible irrespective of their own classification, and it was relevant to determine the claim after considering this clarification and giving the parties an opportunity of hearing.

Conclusion: The denial of credit was set aside and the matter was remanded for de novo decision after taking the Board's clarification into account. The appeal was thus allowed by way of remand.

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