Modvat - Admissibility of credit of duty paid on release paper - Regarding - Central Excise - 31/88

Modvat - Admissibility of credit of duty paid on release paper - Regarding Circular No. 31/88 Dated 15-7-1988 [From F. No. 261/48/2/88-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Modvat - Admissibility of credit of duty paid on release paper - Regarding. I am directed to refer to point No. XV sponsored the West Zone Collectors Conference held at Baroda on 17th 18th December, 1987 regarding admissibility of Modvat Credit in respect of the release paper used in the manufacture of PVC fabrics (leather cloth). The matter has been examined by the Board. The release paper is coated with plastisol. The fabrics is laminated with plastisol coating. Through the process of fusion, plastisol solidifies and fabrics stuck with PVC gets released from release paper. It is thus observed that the aforesaid release paper acts as a carrier/conveyor belt for transfer of plastisol on fabrics as a coating. It is also capable of repeated use upto 4-5 times. In view of the above, it has been decided that Modvat credit would not be available on release paper when used in the manufacture of PVC coated fabrics (leather cloth). The above instructions may be brought to the notice of the field formations. Trade interests may also be suitably informed. Receipt of this letter may please be acknowledged.