Modvat credit on cable tray structures denied where items were treated as plant structures, not capital goods or eligible accessories.

Modvat credit on cable trays treated as structures was denied because the assessee's own description showed they were plant structures, not capital goods or eligible accessories under Rule 57Q. The larger bench ruling on wires and cables was distinguished as inapplicable, while the two-member bench view denying credit on steel structures was followed. The claim that the items qualified as accessories was rejected on the facts, and credit was held inadmissible.

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Issues: Whether Modvat credit was admissible on cable trays treated as structures and on the connected items claimed as capital goods.

Analysis: The assessee's own reply described the cable trays as structures used in the plant. The applicable test under Rule 57Q was whether the goods qualified as capital goods, plant, or eligible accessories. The earlier Larger Bench decision on wires and cables was distinguished because the present dispute concerned structures, and the reasoning in the two-Member Bench decision denying credit on steel structures was followed. On the facts, the claim of the goods as accessories was not accepted.

Conclusion: Modvat credit was held not admissible, and the appeal was dismissed against the assessee.

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