CENVAT Credit Rules, 2002

Ramala Sahkari Chini Mills Ltd., a sugar manufacturer, claimed CENVAT credit on welding electrodes used for maintenance of its plant. The Excise authorities disallowed the credit, imposed a penalty and the Tribunal upheld the disallowance, relying on earlier decisions that welding electrodes are not inputs. The appella…

The appellants, both small‑scale industrial units, manufactured their own branded medicines and also performed job‑work for third parties, producing goods bearing the third parties' brand names. While they paid excise duty on the third‑party branded goods, they also claimed MODVAT/CENVAT credit on the inputs used. The …

The Union of India had granted a ten‑year exemption from excise duty for certain goods, including pan masala and tobacco products, through a 2003 notification. In 2007 it issued a new notification withdrawing that exemption on the ground that the products were hazardous to health. Manufacturers such as Unicorn Industri…

The appellant, Commissioner of Central Excise, challenged the assessee Gujarat Narmada Valley Fertilizers Ltd.’s claim of Cenvat credit on duty‑paid Low Sulphur Heavy Stock (LSHS) used as fuel to generate steam and electricity for producing fertilizer, a product exempt from excise duty. The Tribunal’s larger bench had …

The Union of India appealed against Hindustan Zinc Ltd. challenging the company's claim of Modvat/Cenvat credit on inputs used to produce sulphuric acid and other chemicals that were cleared to fertilizer plants at nil duty. The issue was whether Rule 57CC of the Central Excise Rules, which mandates separate accounting…

MIS Sports & Leisure Apparel Ltd, a manufacturer of knitted garments, purchased excise‑duty‑paid yarn but did not claim MODVAT credit and produced fabrics wholly consumed in garment production. Under the 2002 Union Budget, Notification Nos. 14/2002‑CE and 15/2002‑CE offered two schemes: a concessional duty rate for tho…