Capital goods treatment for electrical equipment depended on undisputed factory use for power supply and control, defeating the reference.

Panel boards and PVC cables were treated as capital goods under Rule 57Q because the factual finding was that they were used in the factory for supplying electricity to machines and controlling electricity supply. That finding was not challenged by the Revenue, so the reference could not be converted into a question of law on a different factual basis. The reference application was rejected, and the Revenue's challenge failed.

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Issues: Whether Panel Board and PVC Cables could be treated as capital goods under Rule 57Q of the Central Excise Rules, 1944 when the factual finding was that they were used in the factory for supplying electricity to machines and controlling electricity supply.

Analysis: The Order-in-Appeal recorded a specific factual finding that the items were used in the factory for supply of electricity to the machines and for controlling the electricity supply through the Panel Board. That factual finding was not challenged by the Revenue. The reference sought to raise a question of law by proceeding on a different factual basis, which was not permissible.

Conclusion: The reference application was rejected and the Revenue's challenge failed.

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