C.C.E.,Vadodara vs Gujarat Narmada Valley Fer. Co. Ltd.

The Supreme Court addressed a conflict between two prior decisions regarding the entitlement of an assessee to claim CENVAT credit on duty-paid Low Sulphur Heavy Stock (LSHS) used in the manufacture of fertilizer exempt from excise duty. The Court held that under the CENVAT Credit Rules, 2002, an assessee is entitled to claim such credit, thereby affirming the principle established in Gujarat Narmada Valley Fertilizers Company Limited's case. The reference was made to resolve the inconsistency with the earlier GSFCL decision, which was deemed less applicable in the context of the current rules.