2015 (10) TMI 2323 - AT - Central Excise

Maintainability of appeal - Monetary limit - Held that - Impugned order was passed by the Commissioner(Appeals) under Section 35A which is specified under Clause (b) of sub-section (1) of Section 35B. In view of Second proviso to Section 35B (1), this Tribunal has discretion to refuse of to admit the appeal in respect of order referred to clause (b) or Clause (c) or clause (d) where amount of duty, amount of fine or penalty determined by such order does not exceed ₹ 50,000/-(before 6/8/2014) and ₹ 2 Lakhs (on or after 6/8/2014). - appeal is dismissed only on the ground that amount is below threshold limit of ₹ 50,000/- without going into merit of the case. - Decided against assessee.

Summary

Issues: Jurisdiction of the Appellate Tribunal under Second proviso to Section 35B of Central Excise Act, 1944

Analysis:

Issue 1: Jurisdiction of the Appellate Tribunal under Second proviso to Section 35B

The Tribunal has the discretion to refuse or admit an appeal under the Second proviso to Section 35B of the Central Excise Act, 1944. This provision specifies that the Tribunal may refuse to admit an appeal in cases where the amount of duty, fine, or penalty determined by the order does not exceed a certain threshold limit. The threshold limit was &8377; 50,000 before 6/8/2014, and &8377; 2 Lakhs on or after 6/8/2014. The impugned order in the present case was passed by the Commissioner (Appeals) under Section 35A, falling under Clause (b) of sub-section (1) of Section 35B. Therefore, the Tribunal had the discretion to refuse to admit the appeal if the amount involved did not exceed the prescribed threshold limit.

Issue 2: Discretion of the Tribunal

In exercising the discretion provided under the Second proviso to Section 35B, the Tribunal in this case decided to refuse to admit the appeal. The Tribunal made it clear that the appeal was dismissed solely on the ground that the amount involved was below the threshold limit of &8377; 50,000, without delving into the merits of the case. This decision highlights the importance of the prescribed threshold limits in determining the jurisdiction of the Appellate Tribunal and its discretion to admit or refuse appeals based on the financial implications involved in the case.

In conclusion, the judgment by the Appellate Tribunal CESTAT MUMBAI in this case focused on the jurisdiction of the Tribunal under the Second proviso to Section 35B of the Central Excise Act, 1944. The Tribunal exercised its discretion to refuse to admit the appeal due to the amount involved being below the prescribed threshold limit, emphasizing the significance of financial thresholds in determining the Tribunal's jurisdiction in such matters.