Capital goods under Rule 57Q include equipment integral to manufacturing use, so the temperature measuring system was covered.

The non-contact infrared temperature measuring system was treated as capital goods because it formed an integral part of the induction heater used in forging manufacture. The analysis applied the settled principle that the expression "capital goods" has a wide ambit under Rule 57Q and must be assessed by reference to the item's use in the manufacturing process. On that basis, the equipment fell within the relevant explanation to Rule 57Q and was covered by the rule, so the Revenue's challenge failed.

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Issues: Whether the non-contact infrared temperature measuring system qualified as capital goods under Rule 57Q of the Central Excise Rules, 1944.

Analysis: The goods were found to be an integral part of the induction heater, which was used in the manufacture of forgings. The earlier authorities had held that such equipment fell within the scope of capital goods under the relevant explanation to Rule 57Q. In view of the settled position that the expression "capital goods" has a wide ambit and depends upon the user of the item in the manufacturing process, the goods in question were covered by the rule.

Conclusion: The non-contact infrared temperature measuring system qualified as capital goods and the Revenue's challenge failed.

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