Modvat credit for bunk-house equipment upheld, while separate spares and extra supplies were excluded from credit.

Modvat credit was treated as admissible on duty paid air-conditioners, refrigerators and furniture used to equip bunk houses, because the Tribunal followed its earlier decision in the assessee's own case and regarded that ruling as binding on the department. A separate distinction was drawn for air-conditioners and other items supplied independently as spares or extras at the customer's request: those goods were not treated as part of the bunk-house equipment and credit was denied on that category.

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Issues: Whether Modvat credit was admissible on the duty paid on air-conditioners, refrigerators and furniture used to equip bunk houses, and whether credit could be claimed on air-conditioners and other equipments supplied as spares or extras along with bunk houses.

Analysis: The Tribunal treated the issue as covered by its earlier decision in the assessee's own case, where credit on air-conditioners, refrigerators and furniture used for bunk houses had been upheld. That prior decision was treated as binding on the department. At the same time, a clear distinction was drawn between equipment used for the bunk houses and air-conditioners or other items supplied separately as spares or extras at the customer's requirement.

Conclusion: Modvat credit was allowed on air-conditioners, refrigerators and furniture used to equip bunk houses, but was denied on air-conditioners and other equipments supplied as spares or extras.

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