Modvat credit on boiler accessories turned on factual use; no referable question of law arose.

Modvat credit on I.D. blowers and economiser coil was treated as depending on their technical character and use as accessories of a boiler. The Tribunal found that the boiler was eligible for credit and that these items formed part of the boiler assembly used to make it function effectively; they were not denied credit merely because they did not directly produce or process the final product. The matter was held to rest on factual appreciation rather than any legal principle requiring reference, and no referable question of law arose.

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Issues: Whether the grant of Modvat credit on I.D. blowers and economiser coil used as accessories of a boiler raised a referable question of law, or whether the Tribunal's determination was only a finding of fact.

Analysis: The Tribunal had found, on the technical nature and use of the items, that both were accessories of the boiler and that the boiler itself was eligible for Modvat credit. The present question proceeded on the premise that the items were used in making the boiler function effectively, and the challenge was only that they did not directly produce or process the final product. Once the boiler was treated as capital goods eligible for credit, the composite elements going into the boiler could not be denied the same benefit on the stated ground. The issue turned on the factual appreciation of the nature of the items and their use.

Conclusion: No question of law arose for reference, and the application was rejected.

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