Utilisation of CENVAT credit for payment of excise duties on final products dismissed as below monetary threshold per circular.

Utilisation of CENVAT credit for payment of basic and secondary excise duties on final products was challenged; the matter is governed by a recent administrative circular prescribing a monetary threshold. The circular directs that petitions involving disputes below a specified financial limit are not maintainable, resulting in dismissal of the special leave petition because the subject matter is below Rs. 5 crore, while preserving any substantive legal questions for future adjudication. The operative effect is to bar judicial entertain­ment of low-value disputes under the stated administrative threshold.

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The Supreme Court dismissed the special leave petition as the dispute amount was less than Rs. 5 Crore, based on a circular from the Ministry of Finance. The Court kept open any questions of law arising in the matter, and pending applications were disposed of.

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