Capital goods treatment extends Modvat benefit to crane parts and accessories under Rule 57Q.

Where a crane is treated as capital goods, its parts and accessories also fall within clause (b) of the Explanation to Rule 57Q and qualify for the same Modvat benefit. The reasoning accepted that the question had already been settled in favour of treating the crane as capital goods, and on that basis the appellate order was found to be correct. No infirmity was identified in the appellate reasoning, so the parts and accessories of the crane were held covered under Rule 57Q and the appeal was rejected.

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Issues: Whether parts and accessories of a crane, when the crane is treated as capital goods, are covered under clause (b) of the explanation to Rule 57Q.

Analysis: The issue was treated as settled in favour of treating a crane as capital goods. On that basis, the parts and accessories of such capital goods were held to fall within clause (b) of the explanation to Rule 57Q. The appellate order had already analysed the matter correctly, and no infirmity was found in that reasoning.

Conclusion: The parts and accessories of the crane were covered under Rule 57Q, and the appeal was rejected.

Ratio Decidendi: Once an item is held to be capital goods, its parts and accessories are also entitled to the benefit available under the relevant Modvat provision covering capital goods.

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