2018 (12) TMI 1239 - HC - Central Excise

Monetary limit involved in the appeal - notification - F No.390/Misc./116/2017.JC dated 11.07.2018 - Held that - The present appeal is not maintainable now due to the tax effect involved in the present case being less than the prescribed monetary limit of ₹ 50,00,000/- and that the present case does not fall under the exception category of Notification dated 17.08.2011 referred in paragraph No.4 of the aforesaid Instructions dated 11.7.2018. Therefore, present appeal may permitted to be dismissed as withdrawn/ not pressed. The appeal filed by Revenue is dismissed as withdrawn/not pressed.

Summary

Issues:
Raising of monetary limits for filing appeals in Central Excise and Service Tax cases.

Analysis:
The judgment pertains to the notification issued by the Central Board of Indirect Taxes & Customs, Department of Revenue, Ministry of Finance, which raised the monetary limits for filing appeals in the field of Central Excise and Service Tax. The notification dated 11.07.2018 specified the new limits for appeals before the CESTAT, High Courts, and Supreme Court. The new limit for High Courts was set at ?50,00,000. The instruction applies to legacy issues related to Central Excise and Service Tax, including pending cases. The withdrawal process for pending cases will follow the existing practice for withdrawal of cases from High Courts, CESTAT, and Commissioner (Appeals), with all other terms and conditions of earlier instructions continuing to apply.

The judgment highlighted that cases involving substantial questions of law, as described in a previous instruction dated 17.08.2011, will be contested irrespective of the prescribed monetary limits. The judgment also emphasized the importance of routine and constant monitoring for the withdrawal of Departmental Appeals, introducing formats in the Monthly Performance Report for field formations to provide monthly reports on the status of appeal withdrawals. The judgment specified the details to be included in the report and a separate register for further perusal by the Board when necessary.

In the specific case discussed in the judgment, the Appellant-Revenue argued that the appeal was not maintainable due to the tax effect being below the prescribed monetary limit of ?50,00,000. The Appellant-Revenue stated that the case did not fall under the exception category of the Notification dated 17.08.2011. Consequently, the appeal filed by Revenue was dismissed as withdrawn/not pressed, with no costs imposed. The order was directed to be sent to the Respondent - Assessee promptly.