HMM LTD. vs COLLECTOR OF CENTRAL EXCISE, NEW DELHI

The Supreme Court interpreted Notification No. 210 of 1979-CE under Rule 8 of the Central Excise Rules, determining the entitlement of the appellant to credit for excise duty paid on inputs (barley malt) used in manufacturing Horlicks. The Court held that the appellant is entitled to take credit only for the proportionate duty related to the quantity of Horlicks cleared at Rajahmundry, rejecting the claim for full credit based on total production. This decision clarifies the application of the notification regarding duty credit in cases where goods are transferred to other factories for packaging.