Modvat credit admissibility: thinners used in paint manufacture qualify for credit unless classifiable under the relevant tariff chapter. Modvat credit for thinners used as diluents in the manufacture of paints is normally available under Rule 57A where the thinner performs a direct role in producing the final product; however, if the thinner is classifiable by composition under the relevant tariff chapter for excluded products, Modvat credit is not available and cases should 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 admissibility: thinners used in paint manufacture qualify for credit unless classifiable under the relevant tariff chapter.
Modvat credit for thinners used as diluents in the manufacture of paints is normally available under Rule 57A where the thinner performs a direct role in producing the final product; however, if the thinner is classifiable by composition under the relevant tariff chapter for excluded products, Modvat credit is not available and cases should be decided accordingly.
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