Capital goods treatment for motor capacitors upheld where motors supplied power to a welding plant.

Capacitors used in electric motors attached to an electrical resistance welding plant were treated as eligible capital goods under Rule 57Q because the motors formed part of the plant and supplied motive power for manufacturing the final goods. On that factual basis, the Tribunal saw no reason to deny capital goods character merely because the components were not separately explained, and it dealt with the issue without relying on the cited case law. The Revenue's appeal therefore failed.

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Issues: Whether capacitors used in the electric motors attached to an electrical resistance welding plant qualified as capital goods under Rule 57Q of the Central Excise Rules.

Analysis: The goods in dispute were found to be part of the motors, and the motors supplied motive power to the welding plant used for manufacturing the final goods. In that factual setting, the Tribunal found no basis to deny the character of the motors as components of the plant merely because they were not separately explained, and considered the issue without resort to the cited case law.

Conclusion: The capacitors were treated as eligible capital goods under Rule 57Q, and the Revenue's appeal failed.

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