Excise tribunal rejects Mahindra and Mahindra appeal

MUMBAI - The Customs, Excise and Service Tax Appellate Tribunal Thursday rejected an appeal of automobile major Mahindra and Mahindra on payment of differential excise duty of Rs.216.03 crore and a penalty of Rs.88.08 crore for its Commander range of vehicles.

The company had classified the Commander range of vehicles as a 10-seater during 1991-1996. The excise department had disputed the classification and had imposed a differential excise duty and a penalty on it.

Mahindra and Mahindra, however, said it had a strong case and would file an appeal against the tribunal’s order in the Supreme Court.

“It may be mentioned that the classification of the vehicle as claimed by the company was on an earlier occasion upheld by the tribunal in favour of the company against which the department had preferred an appeal to the Supreme Court,” Mahindra and Mahindra said in a regulatory statement.