SWADESHI POLYTEX LTD. vs COLLECTOR OF CENTRAL EXCISE

The Supreme Court addressed the entitlement of manufacturers to claim set off of excise duty on inputs under the Central Excises and Salt Act, 1944, specifically Sections 4 and 35L. The Court held that the amended Notification No. 102/81 allowed for such credit even if the inputs resulted in waste or by-products, thus affirming the Collector of Central Excise (Appeals) decision that the appellant was entitled to the set off. The ruling clarified that the provisions of the notification and the proforma credit procedure under rule 56-A were materially similar, allowing for the credit irrespective of the final product's duty status.