Capital goods under Rule 57Q: listed equipment was accepted for Modvat credit after Tribunal followed its earlier ruling.

Listed items such as data processors, power supply units, switches, flux containers, pressure regulators, protection covers, synthetic harness cords and connectors were treated as capital goods under Rule 57Q. The denial of Modvat credit rested on the view that the items were not directly used in manufacture, but the Tribunal followed its earlier ruling on the same issue and applied that reasoning here. As a result, the assessee was held entitled to Modvat credit on the items.

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Issues: Whether the listed items, namely data processors, power supply, proxiarity switches, flux container, pressure regulator, protection cover, synthetic harness cord and connector, qualified as capital goods under Rule 57Q.

Analysis: The denial of Modvat credit was based on the view that the items were not directly used in the manufacture of the final product. The Tribunal noted that the same question had already been examined and concluded in an earlier decision concerning capital goods under Rule 57Q, and the present appeal was to be decided following that view.

Conclusion: The listed items were treated as capital goods for the purpose of Rule 57Q, and the assessee was held entitled to Modvat credit.

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