Collector Of Central Excise, Meerut vs Modi Rubber Ltd

The Supreme Court examined the validity of the CEGAT's decision regarding the proforma credit of duty under Notification No. 95/79 of the Central Excise and Salt Act. The Court upheld the Tribunal's interpretation that the notification does not require a nexus between inputs and outputs for availing proforma credit, thereby affirming the Tribunal's ruling in Vikrant Tyres Ltd. The appeal by the Revenue was dismissed, confirming the right of the manufacturer to claim refund for the proforma credit on inputs used in the production of goods cleared at nil duty.