M/S MARUTI SUZUKI LTD. vs COMMR.OF CENTRAL EXCISE-III,DELHI

The Supreme Court addressed the interpretation of 'input' under Rule 2(g) of the CENVAT Credit Rules, 2002, in the context of CENVAT credit claims by M/s. Maruti Suzuki Ltd. The Court held that the appellant is entitled to claim CENVAT credit on naphtha used for generating electricity, and there is no requirement to reverse proportionate credit for electricity wheeled out to sister units and vendors. The judgment clarifies the scope of 'input' and affirms the appellant's right to credit without reversal for the wheeled electricity.