Modvat credit on dry ice used to make ice cream marketable was held admissible under prior Tribunal reasoning.

Modvat credit on dry ice used by an ice cream manufacturer to place the product in marketable condition was held admissible. The Tribunal followed its earlier view that solid carbon-di-oxide used in containers for transporting ice cream and kulfi to market qualified for credit, and applied that binding reasoning to the present facts. On that basis, the impugned order was found unsustainable and the appeal was allowed.

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Issues: Whether Modvat credit was admissible on dry ice used by a manufacturer of ice cream for putting the product in marketable condition.

Analysis: The Tribunal noted that the question was covered by its earlier decision holding that solid carbon-di-oxide used in the container for transporting ice cream and kulfi to the market was eligible for Modvat credit. Following that binding view, the impugned order was not sustainable.

Conclusion: Modvat credit on dry ice used for making ice cream marketable was held admissible, and the appeal was allowed.

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