Modvat credit extension for thinners used as paint diluents expands eligibility for spray-painted excisable goods.

Admissibility of Modvat credit is extended to thinners used as diluents for paints applied by spray painting on other excisable products, provided the thinners are specially notified under the Modvat Scheme and the products painted are subject to Central Excise; the Board directed that this instruction be communicated to field formations and trade, emphasizing that credit is conditional on notification and the excisability of the painted goods.

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