Modvat credit eligibility for electrical equipment used in manufacturing upheld for cords, regulators and flexible cables.

PCB cords, electronic regulators and PVC flexible cables were treated as electrical equipment and apparatus used for supplying power and controlling the manufacturing process, bringing them within capital goods for Modvat credit under Rule 57Q. The Tribunal applied the Larger Bench ruling in Jawahar Mills Ltd., which had held similar items to be eligible capital goods for Modvat purposes. On that basis, Modvat credit was not denied, the impugned order was upheld, and the appeal was rejected.

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Issues: Whether PCB Cords, Electronic Regulator and PVC Flexible Cables were eligible for Modvat credit as capital goods under Rule 57Q.

Analysis: The items were found to be electrical equipment and apparatus used for supply of power and control in the manufacturing process. The Tribunal relied on the Larger Bench decision in Jawahar Mills Ltd., which had categorically held similar items to be capital goods for the purpose of Modvat credit under Rule 57Q.

Conclusion: The items were held to be capital goods and Modvat credit was not denied. The impugned order was upheld and the appeal was rejected.

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