M/S.GUJARAT NARMADA VALLEY FERTILIZERSCO vs COLLECTOR OF CENTRAL EXCISE, VADODARA

The Supreme Court interpreted exemption notifications under the Central Excise and Salt Act, 1944, specifically focusing on notifications Nos. 147/1974 and 127/1988 concerning the use of Low Sulphur Heavy Stock (LSHS) in fertilizer manufacturing. The Court held that LSHS qualifies for exemption from excise duty when used as feed stock in the production of fertilizers, emphasizing the necessity of proving such usage to the satisfaction of the Assistant Collector of Central Excise. The appeals were allowed, affirming the appellants' entitlement to the exemption.