2016 (1) TMI 1150 - AT - Central Excise

Appeal monetary limit - Held that - In terms of 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 - the present appeal involving amount ₹ 1,78,445/-, which is less than threshold limit of ₹ 5 lakhs - Appeal dismissed.

Summary

Issues:
- Appeal filed by Revenue involving duty of Rs. 1,78,445/-, less than Rs. 5 Lakhs
- Application of Government Litigation Policy dated 17.08.2011
- Precedents set by Hon'ble High Courts of Karnataka and Gujarat regarding monetary limits for appeals

Analysis:
1. Appeal Threshold Limit:
- The appeal filed by the Revenue pertained to a duty amount of Rs. 1,78,445/-, which was below the prescribed threshold of Rs. 5 Lakhs as per the Government Litigation Policy dated 17.08.2011.
- As per the circular, the Revenue was not supposed to file an appeal against the order of the Commissioner (Appeals) if the amount involved was less than Rs. 5 Lakhs.

2. Application of Precedents:
- The judgment referred to precedents set by the Hon'ble High Courts of Karnataka and Gujarat regarding the application of monetary limits for appeals.
- The Hon'ble High Courts held that the monetary limits prescribed under circulars should also be applicable to appeals filed before the issuance of the litigation policy.
- The judgments emphasized that the Revenue should be bound by its own circulars and instructions, leading to the dismissal of appeals solely based on the monetary limit.

3. Dismissal of Appeal:
- Based on the settled legal position and the precedents cited, the Tribunal concluded that the present appeal involving an amount of Rs. 1,78,445/-, below the threshold limit of Rs. 5 Lakhs, was not maintainable.
- Consequently, the appeal was dismissed without delving into the merits of the case, in adherence to the monetary limit set by the Government Litigation Policy.

Therefore, the Tribunal upheld the principles established by the Hon'ble High Courts and dismissed the Revenue's appeal due to the amount involved being below the prescribed threshold limit, in accordance with the Government Litigation Policy.