2006 (1) TMI 130 - SUPREME COURT

Whether the decision in Jaypee Rewa Cement v. CCE [2001 (8) TMI 1332 - SUPREME COURT OF INDIA] would apply to the Cenvat Rules, 2000 framed under the Central Excise Tariff Act, 1985?

Held that:- The schemes of Modvat and Cenvat credit are not therefore, different and we are unable to agree with the conclusion of the Court in J.K. Udaipur Udyog [2004 (9) TMI 101 - SUPREME COURT OF INDIA] that the decision in Jaypee Rewa Cement (supra) would have no application to Cenvat Rules.

The doubt expressed by the referring Bench about the correctness of the decision in CCE v. J.K. Udaipur Udyog Limited (supra) was well founded. Having regard to the fact that the Cenvat Rules in effect substitute the Modvat Rules, the decision in Jaypee Rewa Cement would continue to apply. The decision in Commissioner of Central Excise, Jaipur v. J.K. Udaipur Udyog Limited (supra) holding to the contrary is, in our opinion, not good law. The reference is answered accordingly. All the appeals and special leave petitions will now be listed for being disposed of in the light of this judgment.