Modvat credit on labels, stickers and nameplates admissible - Central Excise - 35/89-CX.8

Modvat credit on labels, stickers and nameplates admissible Circular No. 35/89-CX.8 Dated 21-6-1990 [From F.No. 267/152/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Admissibility of Modvat Credit on labels, stickers and nameplates - Regarding. I am directed to say that doubts have been arisen whether labels, stickers and nameplates which are affixed to the final products, can be regarded as inputs for purpose of Modvat Credit. The matter has been examined by the Board. It has been observed that the labels, stickers and nameplates are affixed to the final products in order to indicate the name of manufacturer, products name, Batch Number, Serial Number etc. which are essential requirements for marketability of the product. In many cases, the nameplate also contains operating instructions. The value of lables, nameplates and stickers etc, is also included in the value of the product to which it is affixed. The labels, stickers and nameplates are embedded to the final product and remain part and parcel of such products. It has therefore been decided by the Board that labels, stickers and nameplates are inputs and Modvat credit should be available on the same. All pending cases may be decided on the basis of above instructions. Trade and field formations may be informed accordingly. This disposes of CCE Bangalore's letter C.No. IV/16/59/89 Special Cell, dated 3-10-1989.