2022 (8) TMI 314 - AT - Service Tax

Maintainability of appeal - monetary limit involved in the appeal - HELD THAT - As the amount involved is very petty, this appeal should be held to be non-admissible and dismissed.

Summary

Issues:
1. Denial of cenvat credit and penalty imposition.
2. Admissibility of appeal based on disputed amount.
3. Non-representation of the appellant during hearings.

Analysis:
1. The appeal was against the Order-in-Appeal dated 13.11.2018, where the Commissioner upheld the Order-in-Original disallowing cenvat credit of Rs.17,875 and imposing penalties under relevant sections. The Assistant Commissioner confirmed the disallowance, ordered recovery, interest, and imposed a penalty. The appellant challenged the denial of credit and penalties imposed. The Tribunal noted the appeal's challenge based on the disputed amount and equivalent penalty.

2. The Tribunal considered Section 35B(1) of the Central Excise Act, 1944, which allows refusal to admit appeals if the disputed amount is less than Rs.50,000. The Tribunal may refuse to admit appeals where the difference in duty or penalty does not exceed Rs.50,000. In this case, the disputed amount was petty at Rs.17,875, making the appeal potentially non-admissible and subject to dismissal.

3. The Tribunal observed that the appellant was not represented during multiple scheduled hearings, indicating non-cooperation or lack of interest in pursuing the appeal. Despite the matter being listed for hearings on several occasions, the appellant either did not appear or sought adjournments repeatedly. This lack of representation and engagement from the appellant's side was noted as a significant factor.

4. The Tribunal referred to relevant legal provisions under Section 35C(1) and 35C(1A) of the Central Excise Act, 1944, which outline the powers of the Appellate Tribunal and provisions for adjournments. Rule 20 of the CESTAT Procedure Rule, 1982 was also cited, allowing for action on appeals due to appellant's default, including dismissal for non-appearance. The Tribunal, considering the appellant's repeated non-representation and lack of engagement, dismissed the appeal.

In conclusion, the Tribunal dismissed the appeal based on the disputed amount, the appellant's non-representation during hearings, and the lack of cooperation in pursuing the case. The legal provisions regarding admissibility, penalties, and procedural rules were considered in reaching the decision to dismiss the appeal.