Modvat credit expansion allows deemed duty credit for yarn, fibres and processed textile fabrics with transitional dates. The amendment broadens Modvat credit eligibility by treating spinning, weaving or knitting and specified processed textile fabrics of cotton or man-made fibres as inputs on a deemed basis under paragraph 7B, and inserts transitional paragraph 7C granting independent processors credit for listed final products manufactured prior to specified dates if cleared on or after those dates.