Capital goods under Rule 57Q include plant-related equipment used in processing or changing goods, allowing Modvat credit.

Goods forming part of plant and used in producing or processing goods, or in bringing about a change in substance, qualify as capital goods under Rule 57Q. Applying the Larger Bench view on the scope of "plant" and the expressions "producing or processing any goods" and "bringing about any change", the Tribunal treated weighing and material handling equipment, electrical machinery, measuring and control devices, wires, cables, control panels and welding equipment as falling within the rule. The disputed goods were therefore held to be capital goods, and Modvat credit was allowable.

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Issues: Whether the disputed weighing and material handling equipment, electrical machinery, and measuring and control devices qualified as capital goods under Rule 57Q so as to entitle the assessee to Modvat credit.

Analysis: The issue was treated as covered by the Larger Bench decision on the scope of "plant" and the expressions "producing or processing any goods" and "bringing about any change". The Tribunal applied that reasoning and held that items such as wires, cables, control panels, and welding equipment could form part of plant and satisfy the relevant description of capital goods under the rule as it stood during the material period.

Conclusion: The disputed goods were capital goods within Rule 57Q and the assessee was entitled to Modvat credit.

Ratio Decidendi: Goods forming part of plant and used in producing or processing goods or in bringing about a change in substance qualify as capital goods under Rule 57Q.

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