Mercedes-Benz Wins Ground Clearance Compensation Cess Dispute case

Mercedes-Benz India Pvt. Ltd. Vs Union of India & Others (Bombay High Court)

Bombay High Court, in a significant ruling on May 21, 2025, has sided with Mercedes-Benz India Pvt. Ltd. in a dispute over the calculation of Compensation Cess on its passenger vehicles. The High Court declared that for the period prior to July 26, 2023, “ground clearance” for the purpose of levying Compensation Cess on certain motor vehicles should be measured in a “laden condition” (fully loaded), not an “un-laden condition” (empty). This decision effectively quash

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