Modvat credit on structural steel items required fresh factual examination to determine whether they were machinery parts or supporting structurals.

Entitlement to Modvat credit on M.S. plates, angles and sheets turned on whether the goods functioned as parts of machinery or were only structurals used for supporting machinery. The issue was factual and required proof through evidence rather than a purely legal determination. As the assessee had not been given a full opportunity to establish the nature of the goods, fresh examination was considered necessary. The denial of credit on this item was therefore set aside and the matter was remanded to the original authority for de novo consideration.

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Issues: Whether Modvat credit on M.S. plates, angles and sheets, claimed to be part of machinery rather than structurals, was liable to be denied or required fresh examination.

Analysis: The entitlement depended on whether the items functioned as parts of machinery or were merely structurals used for supporting machinery. That issue was factual and required proof through evidence. As the lower authority had already remanded other items and the appellant had not been given a full opportunity to establish the nature of the goods, fresh consideration was warranted in the interest of justice.

Conclusion: The denial of credit on this item was set aside and the matter was remanded to the original authority for de novo consideration.

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