2016 (1) TMI 153 - AT - Central Excise

Maintainability if appeal - Monetary limit - Held that - amount involved is less than ₹ 5,00,000/- and as per the litigation policy of the Government vide Board s letter F.No. 390/Misc./163/2010-JC dated 17/08/2011 read with Hon ble Gujarat High Court s judgments in the case of Shreenath Fabrics (2012 (8) TMI 865 - GUJARAT HIGH COURT) and in the case of CCE & C v. Pharmanza Herbal (P.) Ltd. 2014 (9) TMI 330 - GUJARAT HIGH COURT and the judgment of the hon ble Karnataka High Court in the case of CCE v. Presscom Products 2011 (3) TMI 726 - KARNATAKA HIGH COURT , the appeal of the Revenue is dismissed - Decided against Revenue.

Summary

Issues: Appeal filed by Revenue involving an amount less than Rs. 5,00,000 - Applicability of Board's instructions regarding filing appeals to CESTAT - Interpretation of Supreme Court's decision in CIT v. Suman Dhamija - Comparison of instructions governing Income Tax and CBE&C - Reliance on Gujarat High Court's judgment in CCE & C v. Shreenath Fabrics - Consideration of litigation policy and relevant High Court judgments.

Analysis:

The judgment by the Appellate Tribunal CESTAT Allahabad pertains to an appeal filed by the Revenue where the amount involved is less than Rs. 5,00,000. The Tribunal considered the applicability of Board's instructions regarding the filing of appeals to CESTAT, as per Board's letter F.No. 390/Misc/163/2010-JC dated 20.10.2010. The Tribunal noted that as per the said instructions, appeals need not be filed to CESTAT where the duty involved or total revenue, including fine and penalty, is Rs. 5 lakh or below, for appeals filed on or after 1.11.2010.

The Tribunal further analyzed the Supreme Court's decision in CIT v. Suman Dhamija, where it was highlighted that the instructions dated 9.2.2011 would govern only cases filed after the issuance of said instructions. It was noted that the CBE&C instructions did not explicitly state that they shall not govern cases filed before 2011. In this regard, the Tribunal relied on the judgment of the Gujarat High Court in CCE & C v. Shreenath Fabrics, emphasizing that when the appeal was posted before the Court, the Circulars were in force.

Considering the amount involved and the litigation policy of the Government, as per Board's letter F.No. 390/Misc./163/2010-JC dated 17/08/2011, along with the judgments of the Gujarat High Court in the cases of Shreenath Fabrics and CCE & C v. Pharmanza Herbal (P.) Ltd., and the judgment of the Karnataka High Court in CCE v. Presscom Products, the Tribunal dismissed the appeal of the Revenue without delving into the merits of the case. The decision was based on the interpretation of relevant instructions, High Court judgments, and the specific amount threshold set by the Board for filing appeals to CESTAT.