Modvat credit on raw materials excluded from assessable value of finished goods under binding Tribunal view.

Modvat credit taken on raw materials used in manufacturing final products was held not includible in the assessable value of the finished goods. The Tribunal followed the binding Larger Bench view and accepted the assessee's contention that adding the cost of such credit to assessable value was impermissible, so the appeal succeeded.

---

---

Issues: Whether the cost of Modvat credit taken on raw materials used in the manufacture of final products is includible in the assessable value of the finished goods.

Analysis: The issue was treated as covered by the Larger Bench decision holding that Modvat credit taken on raw materials used in manufacture is not to be included in the assessable value of the final product. Following that binding view, the Tribunal accepted the assessee's contention.

Conclusion: The addition of Modvat credit cost to the assessable value was held impermissible, and the appeal succeeded.

---