2019 (9) TMI 957 - HC - Central Excise

Permission to withdraw appeal due to low tax effect - CENVAT Credit - job-work - Rule 4(5) (a) of Cenvat Credit Rules 2002/2004 - HELD THAT - The appellant prays for withdrawal of the instant appeal, however the question of law raised would remain open. Appeal dismissed as withdrawn.

Summary

Issues: Alleged contraventions of Cenvat Credit Rules 2002/2004, confiscation of seized goods, demand of duty, penalty, appeal before CESTAT, substantial questions of law raised.

Analysis:

The Respondent-Company, engaged in manufacturing motor vehicle parts, accessories, moulds, and dies, was found to have cleared dies without payment of duty to job workers during a specific period. Subsequently, a show cause notice was issued for confiscating seized goods and demanding duty under the Central Excise Act, 1944. The Adjudicating Authority ordered confiscation of seized goods and imposed a fine along with confirming the duty demand and imposing penalties and interest.

The Respondent-Company appealed this decision before CESTAT, which allowed the appeal on 26.3.2018. The Appellant then filed a further appeal before the High Court, raising substantial questions of law regarding the observations and findings in the impugned judgment, the consideration of evidence and law, revenue neutrality, deliberate availing of benefits, and the speaking nature of the Tribunal's order.

During the hearing, the Appellant's counsel acknowledged the Ministry of Finance's instructions, indicating that the appeal was not maintainable due to the demand amount being below the monetary limit. Consequently, the Appellant sought withdrawal of the appeal, while preserving the raised questions of law. The High Court dismissed the appeal as withdrawn, with the questions of law remaining open for consideration.

As the appeal was withdrawn, no further orders were deemed necessary regarding the application seeking condonation of delay. The judgment highlights the importance of adhering to procedural requirements and monetary limits in pursuing legal remedies, as guided by relevant governmental instructions.