Capital goods treatment for PVC armoured cables upheld under Modvat credit, following binding precedent on cables and wires.

PVC armoured cables were held to fall within the expression "capital goods" for Modvat credit under Rule 57Q. The Tribunal applied the Larger Bench ruling in Jawahar Mills Ltd., which had already settled that cables and wires qualify as capital goods for this purpose. On that binding precedent, a narrow reading of the definition was rejected, and PVC armoured cables were treated as eligible for credit.

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Issues: Whether PVC armoured cables are eligible to be treated as capital goods for the purpose of Modvat credit under Rule 57Q.

Analysis: The dispute concerned the scope of the expression "capital goods" under the relevant Explanation to Rule 57Q. The Tribunal noted that the issue of eligibility of cables and wires had already been settled by the Larger Bench in Jawahar Mills Ltd., and therefore the question was no longer open for re-agitation. In view of that binding precedent, PVC armoured cables were considered to fall within the ambit of capital goods.

Conclusion: PVC armoured cables are eligible to be treated as capital goods under Rule 57Q, and the Revenue's challenge fails.

Ratio Decidendi: Once a Larger Bench has held that cables and wires qualify as capital goods for Modvat credit purposes, similar cables are covered by Rule 57Q and cannot be excluded on a narrow reading of the definition.

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