Case Details

  • Case Name: Commissioner of Central Excise vs M/s Eicher Tractor
  • Civil Appeal No.: 8873/2011
  • Special Leave Petition (Civil) No.: 18831/2011
  • Special Leave Petition No.: 35552/2013
  • Court: Supreme Court of India
  • Judges: Hon'ble Mr. Justice Aravind Kumar, Hon'ble Mr. Justice S.V.N. Bhatti
  • Order Date: 21-05-2026
  • Relevant Period: Inputs produced from 01-08-2004; tax effect assessed under Circular No.09/2024 (dated 17-Sep-2024)

Parties Involved

  • Appellant: Commissioner of Central Excise (Government)
  • Respondent: M/s Eicher Tractor
  • Appellant Counsel: Mr. Raj Bahadur Yadav (AOR), Mr. B. Krishna Prasad (AOR), Mr. N. Venkataraman (A.S.G.), Mr. Gurmeet Singh Makker (AOR), Mr. Arijit Prasad, Ms. Nisha Bagchi, Mr. Raghvendra S Srivatsa, Mr. Ishaan Sharma
  • Respondent Counsel: Mr. V Lakshmikumaran, Ms. Charanya Lakshmikumaran (AOR), Mr. Swastik Mishra, Ms. Nitum Jain, Ms. Neha Choudhary, Mr. L Badri Narayanan, Ms. Medha Sinha, Mr. Atreya GC, Mr. R. Parthasarathy (AOR), Mr. Vikas Singh Jangra (AOR)

Issues / Allegations / Violations

  • Tax effect of the dispute is less than Rs 5 crore as per CBDT Circular No.09/2024 dated 17‑Sep‑2024.
  • Question of reversal of Cenvat Credit for inputs produced after 01‑08‑2004 when exemption from excise duty on final products was granted.
  • Whether Rule 6(1) of the Cenvat Credit Rules, 2002/2004 applies.
  • Whether the matter remains live or is res integra.

Findings & Observations

  • The Court held that the low tax effect (< Rs 5 crore) warrants dismissal of the appeal.
  • The Special Leave Petition (SLP) No.18831/2011 is dismissed on the same low‑tax‑effect ground.
  • For SLP No.35552/2013, the Court observed that the issue is no longer existent (res integra) and referred to the earlier judgment in Civil Appeal No.9008 of 2011.
  • The Court affirmed that the reversal of Cenvat Credit was correctly granted because the final product was not exempted at the time of reversal, citing the 1999 judgment of Collector of Central Excise, Pune vs. Dai Ichi Karkaria Ltd.

Penalties / Settlements / Directions

  • No monetary penalty imposed; both the Civil Appeal and the Special Leave Petitions are dismissed.

Corrective Actions & Future Obligations

  • No further compliance actions directed; dismissal indicates no ongoing liability.

Final Ruling & Enforcement

  • Civil Appeal No.8873/2011 dismissed.
  • Special Leave Petition (Civil) No.18831/2011 dismissed.
  • Special Leave Petition No.35552/2013 dismissed.
  • Orders pronounced by Hon'ble Justices Aravind Kumar and S.V.N. Bhatti on 21-05-2026.