M/S. BIRLA CORPORATION LTD. vs COMMNR. OF CENTRAL EXCISE

The Supreme Court held that Modvat credit is available for duty paid on spares of a ropeway used to transport crushed limestone from mines to a factory, overturning the CEGAT's decision that disallowed the credit. The Court emphasized that the principles established in J.K. Udaipur Udyog Ltd. and CCE, Chennai Vs. Pepsico India Holdings Ltd. support the appellant's claim. The appeal was allowed, and the CEGAT's order was set aside, affirming the entitlement to Modvat credit under the relevant excise laws.