Input credit depends on actual use in manufacture, not on whether a commodity is theoretically indispensable.

Phosphoric acid used in sugar manufacture was treated as an eligible input for credit because the relevant test was actual use in the manufacturing process, not whether sugar could be produced without it. The note states that once a manufacturer chooses to use a commodity in production, that commodity forms part of the input for that manufacture. The existence of alternative production methods does not justify denying credit on the ground that the commodity is unnecessary in every case, as that would amount to prescribing the technology or process of manufacture. On that basis, the allowance of credit was upheld.

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Issues: Whether phosphoric acid used in the manufacture of sugar was an eligible input for credit purposes.

Analysis: The determining factor was not whether sugar could theoretically be manufactured without phosphoric acid, but whether the article was in fact used in the manufacturing process. Where a manufacturer chooses to use a commodity in production, that commodity is to be treated as an input for that manufacture. The existence of alternative methods of production does not justify denial of credit on the ground that the commodity is unnecessary in every case, since that would amount to prescribing a technology or process of manufacture.

Conclusion: Phosphoric acid, having been used in the manufacture of sugar, was an input, and interference with the order allowing credit was not warranted.

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