Modvat credit on raw materials disallowed generally; integrated manufacturers may claim direct credit for dutiable packaging production. Admissibility of Modvat credit is limited to duty on ready-to-use packaging articles; raw materials used to make packaging are excluded because they are general-purpose and not recognisable as packaging. If raw materials are converted into dutiable ready-to-use packaging treated as final products, credit for the raw materials is admissible. Integrated manufacturers are permitted a procedural simplification to claim credit directly for such raw materials and apply it against duty on final products, without changing the fundamental rule restricting credit to packaging materials.
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 on raw materials disallowed generally; integrated manufacturers may claim direct credit for dutiable packaging production.
Admissibility of Modvat credit is limited to duty on ready-to-use packaging articles; raw materials used to make packaging are excluded because they are general-purpose and not recognisable as packaging. If raw materials are converted into dutiable ready-to-use packaging treated as final products, credit for the raw materials is admissible. Integrated manufacturers are permitted a procedural simplification to claim credit directly for such raw materials and apply it against duty on final products, without changing the fundamental rule restricting credit to packaging materials.
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