Modvat credit limited to ready-to-use packing material; credit not available on raw materials used to make packaging. The Board clarified that Modvat credit on packaging is permissible only when the packing material is brought into the manufacturer's premises in a ready to use condition; Modvat credit is not admissible on raw materials brought in and sent to job workers for conversion into packing material. Manufacturers availing such credit on raw materials must stop the practice and recovery action should be taken for wrong availment; field formations are to be informed.
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 limited to ready-to-use packing material; credit not available on raw materials used to make packaging.
The Board clarified that Modvat credit on packaging is permissible only when the packing material is brought into the manufacturer's premises in a ready to use condition; Modvat credit is not admissible on raw materials brought in and sent to job workers for conversion into packing material. Manufacturers availing such credit on raw materials must stop the practice and recovery action should be taken for wrong availment; field formations are to be informed.
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