Modvat credit denial affirmed for spot welding electrodes as non-inputs; resistance welding electrodes conduct electricity and do not become part of product. Modvat credit is denied for spot welding electrodes/tips because they are non-consumable tools rather than inputs. Technical advice found spot welding to be a resistance welding process whose electrodes act as conductors of electricity and do not become part of the welded product; this contrasts with arc welding electrodes that melt and serve as filler metal. The Board therefore reiterated its prior instructions denying Modvat credit on spot welding electrodes/tips.
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Provisions expressly mentioned in the judgment/order text.
Modvat credit denial affirmed for spot welding electrodes as non-inputs; resistance welding electrodes conduct electricity and do not become part of product.
Modvat credit is denied for spot welding electrodes/tips because they are non-consumable tools rather than inputs. Technical advice found spot welding to be a resistance welding process whose electrodes act as conductors of electricity and do not become part of the welded product; this contrasts with arc welding electrodes that melt and serve as filler metal. The Board therefore reiterated its prior instructions denying Modvat credit on spot welding electrodes/tips.
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