Authority: Supreme Court of India, Civil Appellate Jurisdiction
Order Date: 21-05-2026
Case Overview
- Parties: Commissioner of Central Excise (Appellant) vs. M/s Eicher Tractor (Respondent).
- Civil Appeal No. 8873/2011 was filed challenging a tax matter; the appellant argued the tax effect exceeded Rs 5 crore, but counsel cited Circular No.09/2024 dated 17 September 2024 of the Ministry of Finance, Department of Revenue, CBDT, stating the tax effect was less than Rs 5,00,00,000.
- The Court noted that when the tax impact is below the Rs 5 crore threshold, prosecution of the appeal is not required.
- The order also references Special Leave Petition (SLP) Civil No. 18831/2011, which had earlier been dismissed on the same low‑tax‑effect ground, and SLP Civil No. 35552/2013, which was found to be no longer relevant (res integra).
- The Court quoted an earlier judgment in Civil Appeal No. 9008 of 2011 and the Supreme Court decision dated 11.08.1999 (Collector of Central Excise, Pune vs. Dai Ichi Karkaria Ltd.) concerning reversal of Cenvat Credit and exemption from excise duty.
- Specifically, the Court reiterated that the assessee was entitled to reversal of Cenvat Credit for inputs produced from 01.08.2004, when exemption from excise duty on final products began, and that Rule 6(1) of the Cenvat Credit Rules, 2002/2004 does not apply.
Final Outcome
- The Civil Appeal No. 8873/2011 is dismissed in terms of the signed order placed on file.
- Special Leave Petition (Civil) No. 18831/2011 is dismissed on the ground of low tax effect.
- Special Leave Petition (Civil) No. 35552/2013 is dismissed as the issue is no longer existent.
- All pending applications, if any, in each proceeding shall stand disposed of.
Topics: Tax Litigation, Excise Duty, Cenvat Credit