Packing paper qualifies as part of manufacture where needed to make reams marketable, allowing proforma credit under Rule 56A.

Packing and wrapping paper used to wrap reams of paper sold in wrapped condition was treated as an integral part of the manufactured product because material necessary to make goods marketable forms part of manufacture. On that basis, the wrapping paper was regarded as a component part of the end product for Rule 56A purposes, and proforma credit was admissible. The issue was stated to be covered by the binding Supreme Court decision on the same point.

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Issues: Whether packing and wrapping paper used for wrapping reams of paper manufactured for sale was eligible for proforma credit under Rule 56A.

Analysis: The applicable principle was that material required to make goods marketable forms part of the manufacture, and any raw material or material used for that purpose is to be treated as a component part of the end product. Wrapping paper used for packing reams of paper marketed in wrapped condition was therefore considered integral to the manufactured goods, and the issue stood covered by the binding Supreme Court decision on the same point.

Conclusion: Proforma credit under Rule 56A was admissible in respect of the packing and wrapping paper used for packing reams of paper.

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