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TMI BlogModvat on raw materials used in the manufacture of packaging materialsX X X X Extracts X X X X X X X X Extracts X X X X ..... ity of Modvat credit on raw materials used in the manufacture of packaging materials - Clarification regarding. Attention is invited to Boards instructions F. No. 267/129/87-CX.8, dated 3-3-1988 and F. No. 267/90/88-CX.8, dated 6-9-1988 (Circular No. 45/88 ) under which availability of Modvat credit on raw material used in manufacture of packaging materials has been clarified. 2. Different vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticles which can be put to various uses, one of which is making of packaging materials. These raw materials by themselves are not recognisable as packaging materials. 4. Board has further observed that this controversy has cropped up only with respect to packaging materials like plastic containers and cardboard cartons (which are fully exempt), either because of the fact that they are manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterials. 5. It has been further observed by the Board that where the raw materials are converted into dutiable ready to use packaging articles, Modvat credit in respect of the raw materials duty will be admissible because here the packaging materials can be considered as final products in their own right. Such conversion can be either in the same factory where these ready to use packaging mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nit. This is only a procedural simplification and does not detract from the basic provision under Rule 57A that Modvat credit was allowable only for packaging materials and not in respect of raw materials for making such materials. Therefore Board's instructions dated 3-3-88 referred above do not require any change. Board's letter dated 6-9-88 referred above can be treated as modified to the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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