Modvat credit for weighing scales used in manufacturing was allowed on functional equivalence with covered weighing bridges.

Weighing scales used for weighment of inputs in the manufacturing process were treated as eligible for Modvat credit under Rule 57Q, because weighing bridges were expressly covered and the scales performed a substantially similar function. The Tribunal applied earlier precedent on the same issue and accepted that equipment used for input measurement in production could qualify as capital goods where the rule recognised comparable weighing machinery. On that basis, the disallowance was reversed and credit was held admissible.

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Issues: Whether Modvat credit under Rule 57Q was admissible in respect of weighing scales used in the manufacturing process.

Analysis: The Tribunal found that weighing bridges were expressly covered under Rule 57Q(1)(c) and that weighing scales served a similar function when used for weighment of inputs to be fed into the manufacturing process. Since the issue was already covered by an earlier Tribunal decision, the same reasoning was applied to the present claim.

Conclusion: Modvat credit on the weighing scales was admissible, and the disallowance was set aside in favour of the assessee.

Final Conclusion: The appeal succeeded and the assessee obtained consequential relief according to law.

Ratio Decidendi: Weighing scales used for weighment in the manufacturing process are eligible for Modvat credit as capital goods where the relevant rule treats weighing bridges as covered and the function of the equipment is substantially similar.

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