Modvat credit on air-conditioning inputs upheld where Clean Flo and Floron Gas were treated as eligible inputs

Clean Flo used to remove fungus and unwanted deposits from air-conditioners, and Floron Gas used to produce chilling effect in an air-conditioning plant, were treated as inputs for Modvat credit under Rule 57A. The Tribunal noted that the issue had already been covered by earlier decisions holding similar disputed items to be eligible inputs, and found no contrary basis to deny credit. On that settled position, the items were accepted as qualifying inputs and the appeals were rejected.

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Issues: Whether Clean Flo used for removal of fungus and unwanted deposits from air-conditioners and Floron Gas used for producing chilling effect in an air-conditioning plant were eligible inputs for Modvat credit under Rule 57A.

Analysis: The issue was found to be covered by the Tribunal's earlier decisions holding that the disputed items qualify as inputs for the purposes of Modvat credit. In view of that settled position, no contrary basis was made out to deny the credit.

Conclusion: The disputed items were held eligible inputs for Modvat credit under Rule 57A, and the appeals were rejected.

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