Modvat credit on machine components upheld under Rule 57Q where accessories finding went unrebutted.

Goods were treated as eligible for Modvat credit as capital goods under Rule 57Q because the Commissioner (Appeals) found the disputed items to be components or accessories of machines within Explanation 1(b), and that factual finding was not rebutted by the Revenue. The Tribunal also relied on several prior decisions allowing credit on similar items, reinforcing coverage under Rule 57Q. The Revenue's challenge therefore failed, and the items remained eligible for Modvat credit.

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Issues: Whether the goods in question were eligible for Modvat credit as capital goods under Rule 57Q of the Central Excise Rules.

Analysis: The Commissioner (Appeals) had found that the disputed items were components or accessories of machines and therefore fell within Explanation 1(b) to Rule 57Q. That factual finding was not rebutted by the Revenue. The Tribunal also noted that the respondents had support from several prior decisions allowing Modvat credit on similar items.

Conclusion: The goods were held to be covered by Rule 57Q and the Revenue's challenge failed.

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