COMMISSIONER OF CENTRAL EXCISE, CHENNAI vs M/S. NEBULAE HEALTH CARE LTD.

The Supreme Court addressed the eligibility of Small Scale Industrial Units (SSI Units) for excise duty exemptions under Notification nos. 8/1999 to 8/2003, specifically concerning the availing of MODVAT/CENVAT credit for branded goods manufactured on job work basis. The Court held that the availing of CENVAT credit for inputs used in manufacturing branded goods does not disentitle the assessees from claiming SSI exemptions for goods manufactured under their own brand name. Consequently, the appeals were allowed, and the demand for excise duty was set aside.