Modvat credit eligibility for gases used in transformer transportation affirmed, permitting input credit for nitrogen and carbon dioxide. Modvat credit is admissible on Nitrogen and Carbon Dioxide gases filled into transformer tanks to prevent moisture absorption of impregnated coils during transportation; these gases are vented at the place of use and replaced with oil. Because transformers are cleared only when filled with these gases and cannot be marketed otherwise, the gases constitute an input in relation to manufacture and are eligible for Modvat credit. The Board accepted this recommendation and directed that pending cases be decided accordingly.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Modvat credit eligibility for gases used in transformer transportation affirmed, permitting input credit for nitrogen and carbon dioxide.
Modvat credit is admissible on Nitrogen and Carbon Dioxide gases filled into transformer tanks to prevent moisture absorption of impregnated coils during transportation; these gases are vented at the place of use and replaced with oil. Because transformers are cleared only when filled with these gases and cannot be marketed otherwise, the gases constitute an input in relation to manufacture and are eligible for Modvat credit. The Board accepted this recommendation and directed that pending cases be decided accordingly.
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