2016 (2) TMI 1166 - AT - Service Tax

Monetary amount involved in the appeal - maintainability of appeal - Held that - in Board s Circular F.No. 390/Misc./163/2010-JC dated 17.12.2015 the monetary limit for filing of appeals in the Tribunal has been increased from 5, 00, 000/- to 10, 00, 000/- - Recently the CBE 10, 00, 000/- the appeal of Revenue is dismissed.

Summary

Issues:
1. Withdrawal of appeals based on Circular F.No. 390/MISC/163/2010-JC dated 17.12.2015.
2. Monetary limit for filing appeals in the Tribunal increased to &8377; 10,00,000.
3. Application of litigation policy in pending cases.
4. Dismissal of Revenue's appeal based on monetary limit and litigation policy.

Issue 1: Withdrawal of appeals based on Circular F.No. 390/MISC/163/2010-JC dated 17.12.2015

The appeals were disposed of as withdrawn by the Revenue based on letters filed by the Departmental Representative, indicating the withdrawal in accordance with the Circular. The Tribunal noted the Revenue's request to withdraw the appeals and dismissed them based on the Circular issue, as evidenced by the letters submitted along with the miscellaneous application.

Issue 2: Monetary limit for filing appeals in the Tribunal increased to &8377; 10,00,000

The appeal filed by the Revenue involved an amount less than &8377; 10,00,000. The Assistant Commissioner representing the Revenue stated that there were no instructions to withdraw the appeal. The Tribunal considered the increase in the monetary limit for filing appeals in the Tribunal from &8377; 5,00,000 to &8377; 10,00,000, as per the Board's Circular dated 1.1.2016. Referring to various judgments, including those of the Hon'ble Gujarat High Court and Karnataka High Court, the Tribunal dismissed the Revenue's appeal without delving into the merits of the case due to the amount falling below the revised monetary limit.

Issue 3: Application of litigation policy in pending cases

The Tribunal took into account the litigation policy of the Government, as outlined in the Board's letter F.No. 390/Misc./163/2010-JC dated 17.8.2011, along with judgments from different High Courts. Considering the monetary limit and the applicable litigation policy, the Tribunal decided to dismiss the Revenue's appeal without examining the merits of the case.

Issue 4: Dismissal of Revenue's appeal based on monetary limit and litigation policy

In light of the amount involved being less than &8377; 10,00,000 and the directives of the litigation policy, the Tribunal dismissed the Revenue's appeal. The decision was influenced by the revised monetary limit for filing appeals and the precedents set by various High Court judgments, leading to the dismissal without a detailed evaluation of the case's merits.

This comprehensive analysis of the judgment highlights the key issues addressed by the Tribunal concerning the withdrawal of appeals, the revised monetary limit for filing appeals, the application of the litigation policy in pending cases, and the subsequent dismissal of the Revenue's appeal based on these factors.