Modvat credit inadmissibility: release paper used as plastisol transfer is not eligible for input credit. Modvat credit is inadmissible on release paper used in manufacturing PVC coated fabrics because the paper, coated with plastisol, transfers plastisol to the fabric during lamination and fusion, functioning as a carrier/conveyor and being reusable; thus it is treated as an integral input to the coating process rather than an expendable ancillary, and credit shall not be allowed.
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 inadmissibility: release paper used as plastisol transfer is not eligible for input credit.
Modvat credit is inadmissible on release paper used in manufacturing PVC coated fabrics because the paper, coated with plastisol, transfers plastisol to the fabric during lamination and fusion, functioning as a carrier/conveyor and being reusable; thus it is treated as an integral input to the coating process rather than an expendable ancillary, and credit shall not be allowed.
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