Commissioner Of Central Excise, Mumbai vs Mahindra And Mahindra Ltd.

The Supreme Court held that the availability of Modvat credit to an assessee does not preclude the invocation of the extended period of limitation under the proviso to Section 11A of the Central Excise Act. The Court distinguished the earlier judgment in AMCO Batteries Ltd. v. Collector of Central Excise, clarifying that it does not establish a blanket rule against suppression of facts in cases where Modvat credit is available. The Court set aside the Tribunal's judgment and remitted the matter for fresh consideration, allowing both parties to present their arguments regarding the extended limitation period.