https://www.taxtmi.com/caselaws?id=81119 Exempt paper bags used in manufacturing package tea were treated as an intermediate product, not the final commercial product, because the excisable package tea came into existence only after tea was placed in the bags. Rule 57C did not bar credit merely because the bags were exempt, since Rule 57D(2) protects Modvat credit on inputs used for an exempt intermediate stage in the course of manufacture of the final excisable product. Credit on inputs used to make the paper bags was therefore admissible. en-us Fri, 15 Feb 1991 00:00:00 +0530 Wed, 22 Jun 2011 15:36:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=81119 Exempt paper bags used in manufacturing package tea were treated as an intermediate product, not the final commercial product, because the excisable package tea came into existence only after tea was placed in the bags. Rule 57C did not bar credit merely because the bags were exempt, since Rule 57D(2) protects Modvat credit on inputs used for an exempt intermediate stage in the course of manufacture of the final excisable product. Credit on inputs used to make the paper bags was therefore admissible. Case-Laws Central Excise Fri, 15 Feb 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=81119