Modvat credit on essential plant components allowed where wires, cables and vibration controller were integral to manufacture.

Wires and cables and a vibration controller were treated as capital goods under Rule 57Q because they were essential to manufacture the final product and functioned as parts of the plant. On that basis, Modvat credit was held admissible on both items, and the Revenue's appeal was rejected.

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Issues: Admissibility of Modvat credit on wires and cables and vibration controller as capital goods under Rule 57Q of the Central Excise Rules, 1944.

Analysis: The articles were found to be essential for producing the final product, and without their use the final products could not have been manufactured. They were treated as parts of the plant and therefore satisfied the requirement for capital goods under the rule.

Conclusion: Modvat credit was admissible on both items, and the Revenue's appeal was rejected.

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