https://www.taxtmi.com/caselaws?id=81633 Thinners used as diluents in spray-painting vacuum cleaners were treated as inputs used in or in relation to manufacture and therefore eligible for Modvat credit under Rule 57A. The analysis turned on their functional use: they made the paint fit for spray application, no separate intermediate product came into existence, and spray-painting was an essential step in bringing the vacuum cleaners to market. The later clarification noted that such credit is generally available unless the thinners fall within an excluded tariff classification, and on the stated facts the materials were classified under Chapter 38.14 rather than Chapter 27. en-us Mon, 25 Mar 1991 00:00:00 +0530 Mon, 27 Jun 2011 18:06:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=81633 Thinners used as diluents in spray-painting vacuum cleaners were treated as inputs used in or in relation to manufacture and therefore eligible for Modvat credit under Rule 57A. The analysis turned on their functional use: they made the paint fit for spray application, no separate intermediate product came into existence, and spray-painting was an essential step in bringing the vacuum cleaners to market. The later clarification noted that such credit is generally available unless the thinners fall within an excluded tariff classification, and on the stated facts the materials were classified under Chapter 38.14 rather than Chapter 27. Case-Laws Central Excise Mon, 25 Mar 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=81633