Commissioner Of C. Ex., Ahmedabad vs Ramesh Food Products

The Supreme Court referred to the Larger Bench judgment in Kamani Foods, which overruled the Faridabad Tools case, clarifying that the interpretation of Notification 175/86 regarding Modvat credit must be harmoniously construed. The Court emphasized that a Smaller Bench of the Tribunal is bound to follow the Larger Bench ruling and cannot independently take a different view. The decision in Kharia Cement Works was deemed a more appropriate interpretation of the notification, establishing that exemption is contingent upon the manufacturer's choice to avail Modvat credit for specified goods.