Modvat credit on electrical wires and cables under Rule 57Q was referred to a Larger Bench amid conflicting views.

Eligibility of electrical wires and cables as capital goods for Modvat credit under Rule 57Q was disputed, with different Benches taking conflicting views on whether such items qualified for credit in the factory. Because the authorities were divided on the same legal question, the hearing Bench did not finally dispose of the appeal and referred the issue to a Larger Bench for determination.

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Issues: Whether Modvat credit under Rule 57Q of the Central Excise Rules, 1944 was admissible in respect of electrical wires and cables used in the factory, and whether the conflict of views required reference to a Larger Bench.

Analysis: The appeal raised the question of eligibility of electrical wires and cables as capital goods for Modvat credit under Rule 57Q. Different Benches had taken opposing views on the same question, with one line of authority allowing credit and another refusing it. In view of the conflicting decisions, the matter was considered unsuitable for final disposal by the Bench hearing the appeal.

Conclusion: The question of entitlement to Modvat credit on electrical wires and cables under Rule 57Q was referred to a Larger Bench for decision.

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