ASSOCIATED CEMENT CO. LTD. vs DIRECTOR OF INSPECTION, CUSTOMS CENTRAL, EXCISE, NEW DELHI

The Supreme Court held that under Section 280ZD of the Income Tax Act, 1961, a manufacturer is entitled to a tax credit certificate calculated at a rate not exceeding 25% of the excise duty payable on goods cleared beyond a base year quantity. The Court clarified that the term 'duty of excise' as defined in Section 280ZD(6)(b) specifically refers to duties under the Central Excise and Salt Act, 1944, thus excluding special duties levied under Section 80 of the Finance Act, 1965. The appeal was dismissed, affirming the lower court's ruling that the appellant was not entitled to the tax credit for the special excise duty.