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of <h1>Coated Abrasives in Flush Door Manufacturing Not Eligible for Modvat Credit, Clarifies CBEC at Tariff Conference.</h1> The Central Board of Excise & Customs clarified that coated abrasives used in manufacturing flush doors are not eligible for Modvat credit. This decision was discussed at the 2nd South Zone Tariff Conference held in Bangalore on May 24-25, 1990. Coated abrasives, used to smooth flush doors, fall under Chapter 68, which excludes tools, and are considered producer goods rather than inputs. As such, they are specifically excluded from Modvat credit eligibility under Rule 57A. All pending cases should be resolved in accordance with this decision, and relevant trade and field formations should be informed.
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