https://www.taxtmi.com/caselaws?id=81188 Kraft paper sent to a job worker for conversion into printed cartons, later used for packing chocolates, was held not to be an input in the manufacture of chocolates for MODVAT purposes. Rule 57F(2)(b) permits removal of inputs for manufacture of intermediate products necessary for the final product and their return for further use, but the decisive distinction is between an intermediate product and finished packaging material. The cartons made from kraft paper were treated as packaging material itself, not an intermediate product in the manufacture of the chocolates. MODVAT credit was therefore inadmissible on that basis, and the Revenue's appeal succeeded. en-us Mon, 17 Dec 1990 00:00:00 +0530 Wed, 22 Jun 2011 18:57:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=81188 Kraft paper sent to a job worker for conversion into printed cartons, later used for packing chocolates, was held not to be an input in the manufacture of chocolates for MODVAT purposes. Rule 57F(2)(b) permits removal of inputs for manufacture of intermediate products necessary for the final product and their return for further use, but the decisive distinction is between an intermediate product and finished packaging material. The cartons made from kraft paper were treated as packaging material itself, not an intermediate product in the manufacture of the chocolates. MODVAT credit was therefore inadmissible on that basis, and the Revenue's appeal succeeded. Case-Laws Central Excise Mon, 17 Dec 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=81188