Admissibility of Modvat credit of duty paid on packaging materials used in the manufacture of final products chargeable to specific rate of duty - Clarification regarding - Central Excise - 19/88-CX.8

Admissibility of Modvat credit of duty paid on packaging materials used in the manufacture of final products chargeable to specific rate of duty - Clarification regarding Circular No. 19/88-CX.8 Dated 28-6-1988 [From F. No. 267/38/88-CX.8] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Admissibility of Modvat credit of duty paid on packaging materials used in the manufacture of final products chargeable to specific rate of duty - Clarification regarding. I am directed to say that doubts have been raised as to whether Modvat Credit would be available on glass bottles used for packing aerated waters and on tin containers used in the packing of vegetable products which are chargeable to specific rate of duty. The matter has been examined by the Board. It is observed that vegetable products and aerated waters are chargeable to specific rates of duty. Therefore, Modvat credit of duty paid on glass bottles/tin containers used for packing aerated waters/vegetable products respectively, would be available for payment of duty on such finished products since the consideration as to whether the value of the glass bottles/tin containers has been included in the value of the final products becomes immaterial in such cases because of the existence of a specific rate of duty. The above instructions may be brought to the notice of the field formations. Receipt of this letter may please be acknowledged.