Capital goods classification of wires and cables raised a question of law fit for High Court reference.

Rule 57Q treated capital goods as machines, machinery, plant, equipment, appliances or tools used for producing or processing goods, including spare parts, components and accessories of such items. The document examines whether wires and cables could fall within that description, either as machinery or as accessories used in manufacture. On that basis, the Tribunal viewed the issue as a question of law requiring High Court consideration, and the reference application was allowed with the question referred.

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Issues: Whether a reference should be made on the question whether wires and cables are capital goods within Rule 57Q of the Central Excise Rules, 1944.

Analysis: The term "capital goods" under the relevant rule covered machines, machinery, plant, equipment, appliances or tools used for producing or processing goods, and also spare parts, components or accessories of such items. The Tribunal found that the issue whether wires and cables could themselves be treated as machinery or as accessories used in manufacture raised a question of law requiring consideration by the High Court.

Conclusion: The reference application was allowed and the question of law was referred to the High Court.

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