Clarifies ‘Intended Use’ in Fertilizer Exemption, Supreme Court Rules on Naphtha Tax Dispute

The Supreme Court of India on March 25, 2026 delivered a crucial judgment in the case of M/s Rashtriya Chemicals and Fertilizers Ltd versus Commissioner of Central Excise and Service Tax. The Court clarified the meaning of “intended use” under excise exemption notifications and ruled in favour of the public sector company, allowing exemption benefits on Naphtha used in fertilizer production. Background of the Case M/s Rashtriya Chemicals and Fertilizers…