2019 (6) TMI 1455 - AT - Customs

Maintainability of appeal - monetary amount involved in the appeal - HELD THAT - The Instructions dated 11.07.2018 issued by the C.B.E. C. in exercise of the powers conferred by Section 35R of the Central Excise Act, 1944 fixing monetary limits below which appeal shall not be filed in the Tribunal. The monetary limit has been enhanced to ₹ 20 lakhs through the said Instructions. Further, the said instructions clarified that the said instructions will apply to all pending cases. The appeal filed by the Revenue under litigation policy for the respondent is dismissed.

Summary

Issues:
1. Appeal against redemption fine and penalty imposed by Commissioner (Appeals).
2. Application of monetary limits for filing appeals as per Instructions dated 11.07.2018.
3. Applicability of litigation policy to pending appeals.

Analysis:
1. The judgment pertains to an appeal filed by the Revenue against the redemption fine of ?7.5 lakh and penalty of ?2.50 lakh imposed by the Commissioner (Appeals). The Tribunal notes that the Revenue's appeal falls under the Litigation Policy.

2. The Tribunal considers the Instructions dated 11.07.2018 issued by the C.B.E. & C. regarding monetary limits for filing appeals. These instructions set a monetary limit of ?20 lakhs below which appeals shall not be filed in the Tribunal. The Tribunal observes that the said instructions apply to all pending cases.

3. Referring to decisions by the Hon'ble High Courts of Madras, Karnataka, and Gujarat, the Tribunal acknowledges that the litigation policy, including monetary limits for filing appeals, is applicable to pending appeals as well. The Tribunal also takes into account subsequent instructions issued on 04/04/2018, which expanded the coverage of the litigation policy by removing certain exclusions.

4. Based on the above instructions and legal precedents, the Tribunal dismisses the Revenue's appeal under the litigation policy for the respondent. The Tribunal also disposes of the stay application in this matter.

This comprehensive analysis covers the issues involved in the judgment, addressing the appeal against the redemption fine and penalty, the application of monetary limits for filing appeals, and the applicability of the litigation policy to pending appeals.