1997 (3) TMI 255 - AT - Central Excise

Summary

The appeal addressed whether Modvat credit could be claimed for duty paid on L.D.P.E. granules used to manufacture bags for molded luggage. The Collector had denied the credit, stating the bags were only packaging material. However, the Tribunal allowed the appeal, citing a previous decision that packaging material can be considered an input in the manufacture of the final product.