Appellate Tribunal Upholds Modvat Credit for Chemicals in Manufacturing Process

The Appellate Tribunal CEGAT, Mumbai upheld the Collector (Appeals) order allowing Modvat credit for chemicals used in phosphate coating on motor vehicle parts. The Revenue's appeal against this decision was dismissed as the chemicals were deemed necessary for the manufacturing process of the final product.

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The Appellate Tribunal CEGAT, Mumbai upheld the Collector (Appeals) order allowing Modvat credit for chemicals used in phosphate coating on motor vehicle parts. The Revenue's appeal against this decision was dismissed as the chemicals were deemed necessary for the manufacturing process of the final product. (Citation: 1996 (4) TMI 332 - CEGAT, Mumbai)

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