Modvat credit for suitcase key case upheld where the case formed part of the suitcase sold with it.

The key case supplied with suitcases was treated as part of the finished suitcase for Modvat credit purposes because it was sold together with the suitcase and could not be purchased separately. The claim that it was merely optional was not supported by evidence, so it was not excluded as an independent accessory. The analogy to a tool kit supplied with a motor vehicle was held irrelevant. On that basis, the denial of interference was upheld.

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Issues: Whether the key case supplied with suitcases manufactured by the respondent was an input used in or in relation to the manufacture of the suitcases and eligible for Modvat credit.

Analysis: The key case was sold along with the suitcase and the suitcase could not be purchased separately without it. On the facts, the key case formed part of the suitcase as sold and the contention that it was merely optional was not established by evidence. The analogy of the tool kit supplied with a motor vehicle was held to be irrelevant.

Conclusion: The key case was treated as part of the suitcase for the purpose of Modvat credit, and the finding denying interference was upheld.

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