CENVAT Credit Rules, 2004

Jindal Drugs Ltd. imported cocoa butter and cocoa powder and also received the same from its Jammu unit, then affixed two additional labels on each carton at its Taloja plant before exporting the goods. The Commissioner of Central Excise challenged the company's claim of CENVAT credit and export rebate, arguing that th…

The Union of India filed a civil appeal against M/s Green Alloys Ltd. challenging a Punjab & Haryana High Court order that allowed the release of raw material seized under the Central Excise authorities on the sole condition of an undertaking to pay duty, without requiring cash security or a bank guarantee. The dispute…

Bharat Petroleum Corporation Ltd (BPCL) supplied aviation fuel to Go Airlines under two supply agreements (2007‑2009 and 2009‑2011). BPCL claimed interest on delayed payments and invoked the arbitration clause, while Go Airlines raised two counter‑claims, one seeking CENVAT credit invoices. The arbitrator, applying Sec…

Ind‑Swift Laboratories Ltd., a bulk drug manufacturer, admitted that it had claimed CENVAT credit on fraudulent invoices between 2001 and 2006 and paid the assessed duty. The Settlement Commission, under Sections 32E and 32F of the Central Excise Act, 1944, settled the matter and imposed simple interest of 10% per annu…

M/s. Kap Cones, a manufacturer of paper cones, was penalised by the Commissioner of Central Excise for disallowing Cenvat credit and for other violations. The Committee of Chief Commissioners, after reviewing the Commissioner’s order, directed the Commissioner to file an appeal before the Customs, Excise and Service Ta…

The Supreme Court examined whether Northern Operating Systems Pvt. Ltd. (the assessee) was liable to pay service tax on payments made to its overseas group companies for seconded employees. The Court held that the overseas entities supplied manpower services, making the assessee the service recipient liable for service…

The assessees, construction service providers, paid service tax under Notification 15/2004‑ST, which levies tax at 33% of the gross amount charged for construction services. In several projects the service recipients supplied certain materials (e.g., steel, cement) free of charge. The Revenue argued that the value of t…

Mis. Maruti Suzuki Ltd., a motor‑vehicle manufacturer, generated electricity in its plant using naphtha and diesel and sold a portion of the surplus to its joint ventures, vendors and the grid for a price. The company claimed CENVAT credit on the duty paid on the fuel used for electricity generation, arguing that elect…

The Central Excise Department appealed a CESTAT order that allowed M/s. Vasavadatta Cements Ltd. to claim CENVAT credit for transportation tax paid on moving finished goods from the place of removal to depots or buyers. The dispute centered on the interpretation of "input service" under Rule 2(1) of the CENVAT Credit R…

SRD Nutrients Private Ltd, a manufacturer in Assam, claimed refund of Education Cess and Higher Education Cess paid along with excise duty on goods that were exempted from excise duty under Notification 20/2007‑CE dated 25‑Apr‑2007. The lower authorities and CESTAT held that the notification only exempted excise duty, …

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…

The appellant, Commissioner of Customs, challenged Andhra Sugars Ltd's claim of Cenvat credit for service tax paid on outward transportation of sugar to customers' premises. The Revenue argued that such transport occurs beyond the "place of removal" defined under the Central Excise Act and therefore cannot be treated a…

The appellant (Revenue) challenged the CESTAT’s order that allowed M/s Interarch Building Products to treat its construction services as a works‑contract service, pay service tax on the total contract value and claim CENVAT credit on inputs. The Court examined whether Rule 2A of the Service Tax (Determination of Value)…

UltraTech Cement Ltd claimed Cenvat credit for service tax paid on outward transportation of cement from its factory to customers' premises during Jan‑Jun 2010. The Revenue argued that such transport service, being beyond the "place of removal", is not an "input service" under Rule 2(l)(ii) of the Cenvat Credit Rules, …