Modvat credit on packing liners denied where evidence failed to prove goods were distinct from excluded woven sacks.

Modvat credit was denied on plastic bags claimed as liners for packing master batches because the appellant failed to prove that the goods received were distinct from the excluded high density polyethylene woven sacks. The only evidence was a gate pass describing the items as plastic packing bags and a letter stating that Modvat entries for polyethylene liners had not been reversed, which was insufficient to establish admissible input eligibility. In the absence of supporting proof of the actual nature of the goods, the credit claim could not be accepted.

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Issues: Whether Modvat credit was admissible on plastic bags used for packing master batches, in view of the exclusion for high density polyethylene woven sacks under the relevant Modvat rule.

Analysis: The appellant accepted that credit was not available for high density polyethylene woven sacks, but sought credit for plastic bags said to be used as liners. The only material produced was a gate pass describing the goods merely as plastic packing bags and a letter stating that Modvat entries for polyethylene liners had not been reversed. That evidence did not establish that the goods received were the claimed inputs or that they were different from the excluded woven sacks. In the absence of substantiating proof, the claim for credit could not be accepted.

Conclusion: Modvat credit was not admissible to the appellant.

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