Modvat credit admissibility upheld for White Heat C Special and unmachined castings used in kiln operation.

Modvat credit was considered for White Heat C Special and unmachined castings. White Heat C Special was argued to fall under Rule 57A rather than Rule 57Q, but the analysis stated that duty-paid credit was available in any event, so the item qualified for credit. Unmachined castings used in the kiln discharge were treated as necessary for operation at high temperature, supporting their eligibility for Modvat credit. Credit was therefore admissible on both items, and the appeal was found without merit.

---

---

Issues: Whether Modvat credit was admissible in respect of White Heat C Special and unmachined castings.

Analysis: The dispute concerned the proper treatment of White Heat C Special, which was contended to fall under Rule 57A rather than Rule 57Q, but the finding was that duty-paid credit was available in any event. As regards unmachined castings, they were used in the kiln discharge and were necessary for its operation at high temperature, supporting their eligibility for Modvat credit.

Conclusion: Modvat credit was admissible on both items, and the appeal was without merit.

---