https://www.taxtmi.com/caselaws?id=85657 Modvat credit under Rule 57A was considered available for LDPE granules used to manufacture plastic bags in which finished yarn was packed, because the packing process was treated as an incidental and ancillary part of manufacture and clearance. Packing yarn first in plastic bags and then in corrugated cartons was treated as integrally connected with the manufacturing process, and the argument that the bags were not directly used on the final product was rejected. On that approach, materials used to make such packing can qualify as inputs where the packing is part of the clearance process. en-us Tue, 11 Jun 1996 00:00:00 +0530 Sat, 06 Aug 2011 13:38:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=85657 Modvat credit under Rule 57A was considered available for LDPE granules used to manufacture plastic bags in which finished yarn was packed, because the packing process was treated as an incidental and ancillary part of manufacture and clearance. Packing yarn first in plastic bags and then in corrugated cartons was treated as integrally connected with the manufacturing process, and the argument that the bags were not directly used on the final product was rejected. On that approach, materials used to make such packing can qualify as inputs where the packing is part of the clearance process. Case-Laws Central Excise Tue, 11 Jun 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=85657