2019 (9) TMI 116 - HC - Central Excise

Permission for withdrawal of appeal - monetary amount involved in the appeal - HELD THAT - The appellant admits that in view of instructions dated 22.8.2019 issued by Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs (Judicial Cell) the instant appeal is not maintainable before this Court, the monetary limit being below ₹ 1, 00, 00, 000/-. Appeal dismissed as withdrawn.

Summary

Issues:
1. Appeal against the order passed by Customs, Excise, and Service Tax Appellate Tribunal.
2. Exemption from Central Excise duty on manufactured vehicle bodies.
3. Allegations of violation of conditions of notifications regarding duty credit.
4. Show cause notices for recovery of duty issued to the respondent.
5. Confirmation of demand, interest, and penalty by Additional Commissioner.
6. Appeal filed before Commissioner (Appeals) and subsequent proceedings.
7. Partial allowance of appeal by CESTAT.
8. Present appeal questioning the imposition of penalty and correctness of the Tribunal's order.
9. Monetary limit for appeal as per Ministry of Finance instructions.

Analysis:
1. The respondent company, engaged in manufacturing vehicle bodies, claimed exemption from Central Excise duty under specific notifications. The issue arose when it was alleged that the respondent availed credit on duty paid for inputs used in manufacturing vehicles, violating the conditions of the notifications. Show cause notices were issued for duty recovery, leading to confirmation by the Additional Commissioner along with interest and penalty imposition.

2. The respondent appealed before the Commissioner (Appeals), challenging the confirmation. The Commissioner held the confirmation unsustainable, prompting the Revenue to appeal before CESTAT. The CESTAT partly allowed the appeal by upholding the demand and interest but setting aside the penalty.

3. The present appeal raised substantial legal questions regarding the mandatory imposition of penalty once contravention is established, the correctness of the Tribunal's order based on facts, and the justification of the Tribunal's decision in accordance with the law.

4. During the hearing, the appellant's counsel acknowledged the monetary limit for appeal set by the Ministry of Finance. As the appeal amount was below the specified limit, the appellant sought withdrawal of the appeal, which was granted with the preservation of the legal questions raised for future consideration.