Electronics Corp.Of India Limited vs Union Of India & Ors

The Supreme Court addressed the issue of Modvat/Cenvat Credit entitlement for Electronics Corporation of India Ltd. concerning inputs whose values were written off. The Court held that the Central Government was justified in demanding the reversal of credit taken on such inputs, rejecting the assessee's argument based on AS-2 regarding financial requirements. The Court affirmed the lower authorities' decisions, including the dismissal of the writ petition by the Andhra Pradesh High Court, thereby upholding the demand for reversal of credit.