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2016 (1) TMI 1149 - AT - Central ExciseMaintainability of appeal - monetary limit for filing appeal - as per Government Litigation Policy Vide F. No. 390/MISC/163/2010/JC dated 17.08.2011 Revenue is not supposed to file appeal against order of the Commissioner (Appeals) if amount involved is less than ₹ 5 Lakhs - whether the monetory limit prescribed under circular shall also be applicable in the appeal which is filed prior to issuance of aforesaid litigation of policy? Held that - The Hon ble High Court of Karnataka judgment in the case of Commissioner of C.Ex. Bangalore-III V/s Presscom Products 2011 (3) TMI 726 - KARNATAKA HIGH COURT and Hon ble High Court Gujarat judgments- Commissioner of C.Ex. & Cus., Surat-I V/s Shreenath Fabrics 2012 (8) TMI 865 - GUJARAT HIGH COURT and Commissioner of C.Ex. & Cus., Vadodara-I V/s Pharmanza Herbal Pvt. Ltd. 2014 (9) TMI 330 - GUJARAT HIGH COURT has held that the monitory limit prescribed under circular shall also be applicable in the appeal which is filed prior to issuance of aforesaid litigation of policy - the present appeal involving amount ₹ 51,529/-, which is less than threshold limit of ₹ 5 lakhs not maintainable - appeal dismissed - decided against Revenue.
Issues: Appeal involving duty amount less than threshold limit of Rs. 5 lakhs
Analysis: The appeal filed by the Revenue pertained to a duty amount of Rs. 51,529, which is below the threshold limit of Rs. 5 lakhs as per the Government Litigation Policy. The policy states that the Revenue should not file an appeal against the Commissioner (Appeals) order if the amount involved is less than Rs. 5 lakhs. The Hon'ble High Courts of Karnataka and Gujarat have held that the monetary limit prescribed under the circular shall also apply to appeals filed before the issuance of the policy. The judgments emphasized that the assessee cannot be denied the benefit of the circular even if substantial questions of law are answered against them. The High Courts ruled that the Revenue is bound by its own circulars and instructions, and therefore, the monetary limit applies. Consequently, the present appeal involving an amount less than Rs. 5 lakhs was deemed not maintainable, and it was dismissed without delving into the merits of the case. Judgments: - Commissioner of C.Ex. Bangalore-III V/s Presscom Products [2011(268) E.L.T. 344(Kar.)] - Commissioner of C.Ex. & Cus., Surat-I V/s Shreenath Fabrics [2014(303) E.L.T. 540(Guj.)] - Commissioner of C.Ex. & Cus., Vadodara-I V/s Pharmanza Herbal Pvt. Ltd. [2014(306) E.L.T. 153(Guj.)] The judgments highlighted the importance of adhering to the monetary limits set by the circulars and instructions issued by the Central Board of Excise and Customs. They underscored that even if the appeal was filed before the circular's issuance, the circular's provisions would apply if the appeal came up for consideration after the circular was in force. The judgments emphasized that the Revenue cannot bypass the monetary limits set by the circulars and must abide by them. The decisions of the High Courts established a clear precedent that the monetary limit prescribed under the circulars is binding on the Revenue, and appeals below the specified limit should not be entertained. Overall, the judgments and the subsequent dismissal of the appeal in the present case underscore the significance of complying with the monetary limits set by the circulars and instructions, ensuring uniformity and consistency in the handling of appeals involving duty amounts below the specified thresholds.
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