Capital goods under Rule 57Q include measuring instruments needed to enable manufacture, even without direct production use.

Measuring and testing instruments used to assess finished goods are treated as capital goods under Rule 57Q of the Central Excise Rules, 1944. The definition of "plant" is of wide import and is not confined to items directly used in production; goods necessary to make the manufacturing process possible also fall within capital goods. Because the rule does not require direct use in actual production or processing, measuring instruments used in relation to manufacture are covered. The Revenue's request for reference was therefore held not sustainable.

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Issues: Whether measuring instruments used for testing and measuring finished goods qualify as capital goods under Rule 57Q of the Central Excise Rules, 1944.

Analysis: The definition of "plant" in the capital goods provision is of wide import and is not confined to items directly used in production. Goods that are necessary to make the production process possible are covered within the ambit of capital goods. Measuring and testing instruments used in relation to manufacture fall within this broader understanding, as the relevant rule does not require direct use in the actual production or processing of goods.

Conclusion: Measuring instruments are capital goods for the purpose of Rule 57Q of the Central Excise Rules, 1944, and the Revenue's request for reference is not sustainable.

Ratio Decidendi: Capital goods under Rule 57Q include items necessary to enable the manufacturing process, even if they are not directly used in production.

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