COLLECTOR OF CENTRAL EXCISE, MEERUT vs MODI RUBBER LTD.

The Supreme Court, in this case, addressed the interpretation of Notification No. 95/79 under the Central Excise and Salt Act, ruling that there is no requirement for a nexus between inputs and outputs for availing proforma credit. The Court upheld the CEGAT's decision, which had previously allowed the respondent's claim for refund of proforma credit on inputs used in manufacturing tyres, tubes, and flaps cleared at nil duty. The Court concluded that the Assistant Collector's rejection of the refund claim was incorrect, affirming the Tribunal's interpretation that the Notification does not impose a duty payment condition on final products.