Modvat meeting held at Bangalore on 29-11-1989 - Point No. 1 - Modvat on BOPP/ Polyester films used for manufacture of Synthetic Rubber Cots & Aprons - Admissibility regarding - Central Excise - 3/90-CX

Modvat meeting held at Bangalore on 29-11-1989 - Point No. 1 - Modvat on BOPP/ Polyester films used for manufacture of Synthetic Rubber Cots Aprons - Admissibility regarding Circular No. 3/90-CX Dated 18-1-1990 [From F. No. 263/79/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Modvat meeting held at Bangalore on 29-11-1989 - Point No. 1 - Modvat on BOPP/ Polyester films used for manufacture of Synthetic Rubber Cots Aprons - Admissibility regarding. I am directed to refer to Point No.l of the monthly Modvat meeting, held at Bangalore on 29-11-1989 wherein the Trade had suggested for permitting Modvat credit on Bioxy Oriented Poly Propylene/Polyester films used in the manufacture of synthetic rubber cots and aprons. 2. It has been represented that the BOPP films are wrapped around the cots and aprons before vulcanisation, and after vulcanisation the film loses its property and is thrown away. It was contended that since the said film was consumed during the manufacturing process and cannot be used again, Modvat credit should be permitted on the same. 3. The matter has been examined by the Board. It is observed that the said BOPP films act as a covering device and not as an input in the manufacturing of final products. BOPP films used as separators in the manufacturing of Industrial laminates have not been treated as inputs vide Board's letter F.No. 263/l/89-CX.8, dated 10-1-1990 (Circular No. 1/90-CX.8 ). Therefore, it has been decided that they cannot be regarded as inputs for purposes of allowing Modvat credit in the manufacturing of Synthetic rubber cots and aprons as well. 4. Trade and field formations may be informed suitably. 5. All pending assessments may be finalised on the basis of these instructions and wrong credits if any availed may be recovered. 6. Receipt of this letter may please be acknowledged.