M/S.Birla Corporation Ltd vs Commnr. Of Central Excise

The Supreme Court held that the duty paid on spares of ropeway used for transporting crushed limestone is eligible for Modvat credit under the Central Excise Act. The Court referenced previous rulings in J.K. Udaipur Udyog Ltd. and CCE, Chennai Vs. Pepsico India Holdings Ltd., establishing that transportation of raw materials to the factory qualifies for credit. The appeal was allowed, overturning the CEGAT's decision, and confirming the appellant's entitlement to Modvat credit.