Electric control panel qualifies as capital goods for Modvat credit under Rule 57Q, rejecting denial of input credit.

Electric control panels installed in a plant were held eligible for Modvat credit under Rule 57Q because a panel forming part of the plant qualifies as capital goods, including under Heading 85.37 of the Central Excise Tariff. The rejection based on the panel not itself producing, processing, or changing the goods was not accepted, and the denial of credit was found unsustainable.

---

---

Issues: Whether the electric control panel installed in the plant was eligible for Modvat credit under Rule 57Q.

Analysis: The claim was rejected below on the view that the control panel did not itself produce, process, or bring about any change in the goods. The Tribunal followed contrary decisions holding that a control panel forming part of the plant qualifies for Modvat credit under Rule 57Q. The panel was also noted to fall under Heading 85.37 of the Central Excise Tariff within the definition of capital goods.

Conclusion: The electric control panel was eligible for Modvat credit under Rule 57Q, and the denial of credit was unsustainable.

---