Modvat credit on power cable and hoist allowed as capital goods under Rule 57Q.

Power cable and hoist were treated as capital goods for purposes of Modvat credit under Rule 57Q of the Central Excise Rules. The entitlement turned on whether the items fell within the scope of capital goods, and the order followed the Larger Bench precedent holding power cable to be covered by Rule 57Q. The hoist, as material-handling equipment, was also held to fall within the same rule. Credit of duty paid on both items was therefore admissible to the assessee.

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Issues: Whether power cable and hoist were capital goods eligible for Modvat credit under Rule 57Q of the Central Excise Rules.

Analysis: The entitlement to Modvat credit turned on whether the disputed items qualified as capital goods. The issue stood covered by the Tribunal's Larger Bench ruling relied upon in the order, which treated power cable as capital goods for the purpose of Rule 57Q. The hoist, being a material-handling equipment, was also treated as falling within the scope of capital goods under the same rule.

Conclusion: Both power cable and hoist were held to be capital goods under Rule 57Q, and credit of duty paid thereon was admissible to the assessee.

Ratio Decidendi: Items falling within the scope of capital goods under Rule 57Q are eligible for Modvat credit, including equipment used in material handling where covered by the governing precedent.

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