Modvat credit on glass bottles allowed where endorsed gate passes and receipt of full quantity supported admissibility.

Modvat credit on glass bottles was held admissible where the bottles were supplied under duly endorsed gate passes after printing and repacking, and there was no finding that the full quantity had not reached the factory. Relying on an earlier bottling-goods decision, the Tribunal concluded that the denial of credit could not be sustained. The appellant was therefore entitled to avail Modvat credit on the glass bottles used in the manufacture of aerated drinks.

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Issues: Whether Modvat credit on glass bottles was admissible when the bottles were supplied under endorsed gate passes after printing and repacking, and there was no finding that the entire quantity had not been received.

Analysis: The Tribunal found the facts to be similar to an earlier decision on bottling goods. The bottles were supplied under the original gate passes duly endorsed in the appellant's name after printing, and there was no clear finding that the full quantity had not actually reached the factory. On that basis, the denial of credit could not be sustained.

Conclusion: The appellant was entitled to avail Modvat credit on the glass bottles used in the manufacture of aerated drinks.

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