M/s Rupa & Co. Ltd. v. Custom, Excise & Service Tax Appellate Tribunal, Chennai-6 [Civil Miscellaneous Appeal No.2350 of 2006 & M.P.No.1 of 2006 (High Court – Madras)]

The Madras High Court in this matter has observed in para 13 that “what is contained in finished product is only a quantity of all the inputs of the same weight as that of the finished product would presuppose that all manufacturing processes would never have an inherent loss in the process of manufacture. The expression ‘inputs of such finished product' contained in finished products' cannot be looked at theoretically with its semantics. It has to be understood in the context of what a manufacturing process is. If there is no dispute about the fact that every manufacturing process would automatically result in some kind of a loss such as evaporation, creation of by-products, etc., the total quantity of inputs that went into the making of the finished product represents the inputs of such products in entirety” and held the manufactured is right in making a claim for CENVAT credit, with reference to the total quantity and the value of the inputs that went into the making of the fabric.

To read the complete judgment 2016 Taxo.online 10