Modvat on cellophane / foils used in packing the final products - Central Excise - 23/89

Modvat on cellophane / foils used in packing the final products Circular No. 23/89 Dated 4-7-1989 [From F.No. 263/31/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Minutes of the Monthly Modvat meeting held at Bombay on 22-4-1989 - Point No. 28 - Admissibility of Modvat Credit on cellophane/foils used in packing the final products. I am directed to invite your attention to the minutes on Point No. 28 of the Monthly Modvat meeting held on 22-4-1989 on the above subject. It has been represented that Modvat Credit is being denied on the cellophane/foils used for packing toothpaste, shampoo etc. on the ground that such cellophane/foil are inputs for packing containers and not for final products. The matter has been examined by the Board. It has been decided that Credit of duties paid on cellophane/foil used in packing the final products would be admissible provided the packing containers (used for filling the final products) do not emerge at the intermediate stage as a distinct and identifiable excisable product. Field formations and trade interest may be suitably informed. Receipt of this letter may please be acknowledged.