M/S.HYDERABAD ASBESTOS CEMENT vs UNION OF INDIA

The Supreme Court addressed the applicability of Rule 56A of the Central Excise Rules, 1944, concerning the proforma credit procedure for excise duty on raw materials used in manufacturing finished products. The Court held that the benefit of proforma credit is available even if the raw materials are excisable under different tariff items than the finished products, thereby allowing the appellants to claim credit for duties paid on inputs. The decision of the Andhra Pradesh High Court was overturned, affirming the appellants' entitlement to the credit under the specified rule.