2016 (10) TMI 788 - AT - Central Excise

Maintainability of appeal - duty amount involved in the case is Rs. 1,13,852/- and interest thereon - Tribunal has discretion either to refuse or to admit the appeal under Second proviso to Section 35B of Central Excise Act, 1944 - Held that - the 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 or 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). As the amount involved is below ₹ 2 Lakhs, the appeal is dismissed.

Summary

Issues Involved:
Admission of appeal under Second proviso to Section 35B of Central Excise Act, 1944 based on the duty amount involved.

Analysis:
The judgment revolves around the discretion of the Appellate Tribunal under the Second proviso to Section 35B of the Central Excise Act, 1944 regarding the admission of an appeal. The Tribunal has the authority to either refuse or admit an appeal based on certain criteria. The specific provision states that the Tribunal may refuse to admit an appeal in cases where the duty amount, fine, or penalty determined by the order does not exceed a specified limit. In this case, the impugned order was passed by the Commissioner (Appeals) under Section 35A, falling under Clause (b) of subsection (1) of Section 35B. As per the Second proviso to Section 35B (1), the Tribunal has the discretion to refuse or admit the appeal if the amount involved is below the prescribed threshold. The threshold limit was mentioned as Rs. 50,000 before a certain date and Rs. 2 lakhs on or after that date.

The Tribunal, after considering the above provisions, decided to refuse to admit the appeal in this case. The judgment explicitly states that the appeal is dismissed solely on the grounds that the amount involved is below the threshold limit of Rs. 2 lakhs, without delving into the merits of the case. This decision highlights the importance of complying with the statutory limits set forth in the Second proviso to Section 35B of the Central Excise Act, 1944 when it comes to the admission of appeals before the Appellate Tribunal. The judgment serves as a reminder of the legal framework within which such decisions are made, emphasizing the significance of meeting the prescribed criteria for appeal admission.