Case Law Analysis
|Supreme Court of India
Central Excise Act | 'Intended Use' at Procurement Determines Exemption Eligibility, Not Actual Usage : SC
The Supreme Court clarifies that excise duty exemptions for Naphtha in fertilizer manufacture hinge on the 'intended use' declared at procurement, not its eventual application. Extended limitation under the Act cannot be invoked without proof of deliberate suppression, particularly where revenue neutrality exists due to subsidies.