Admissiblity of MODVAT credit of duty paid on BOPP Films used in the manufacture of industrial and decorative laminates - Central Excise - 1/90-CX.8

Admissiblity of MODVAT credit of duty paid on BOPP Films used in the manufacture of industrial and decorative laminates Circular No. 1/90-CX.8 Dated 8-1-1990 [From F. No.263/1/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Admissiblity of MODVAT credit of duty paid on BOPP Films used in the manufacture of industrial and decorative laminates. I am directed to say that a doubt has been raised as to whether MODVAT credit of duty paid on BOPP Films in the manufacture of industrial and decorative laminates would be admissible or not. 2. The matter has been examined by the Board. It is reported that BOPP Films are used as separators in the lamination process for the manufacture of industrial and decorative laminates. Resin-coated papers are kept in the hydraulic press separated by BOPP Films for obtaining a number of decorative laminated sheets of various thicknesses, in this process, BOPP Films are used to ensure that the resin-coated paper do not get stuck to each other during process of lamination. These films are used a number of times and then discarded. It is observed, therefore, that BOPP Films do not act as a input in the manufacture of final product. Therefore, it has been decided by the Board that BOPP Films used in the process of manufacture of industrial and decorative laminates cannot be treated as inputs and hence MODVAT credit of duty paid on such BOPP Films should not be allowed. 3. These instructions may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 4. All pending assessments may be finalised on the above basis. 5. Receipt of this letter may please be acknowledged. 6. Hindi version will follow.