Union Of India & Ors vs M/S Hindustan Zinc Ltd

The Supreme Court addressed the entitlement of assessees to Modvat/Cenvat Credit for inputs used in manufacturing exempted products under the Central Excise Rules, specifically Rule 57CC and Rule 6 of the Cenvat Credit Rules, 2004. The Court held that the assessees are not liable to pay 8% excise duty on the sale of by-products like sulphuric acid when proper accounts are maintained, emphasizing the necessity of maintaining separate records for dutiable and exempt goods. The appeals were decided in favor of the assessees, affirming their right to claim credit without additional duty under the specified rules.