Modvat credit on inputs permitted even when final product is liable to specific rate of duty. The Modvat scheme permits credit of duty paid on inputs, including packaging material, when used in or in relation to manufacture of final products; the fact that the final product is chargeable to a specific rate of duty does not preclude granting Modvat credit. The Board's earlier instructions permitting such credit are reaffirmed and should be followed by trade and field formations, who are to be informed and asked to acknowledge receipt.