2015 (9) TMI 299 - HC - Central Excise

Duty demand - Confiscation of goods - Imposition of penalty - Held that - A Division Bench of this Court in the case of Commissioner of Central Excise & Customs v. Stovec Industries Ltd. reported in 2013 (1) TMI 72 - GUJARAT HIGH COURT held that in view of Circular dated 17-8-2011, tax appeal involving the duty amount below ₹ 10 lakh is not maintainable and this Circular also applies to the pending appeal. Following the aforesaid decision of the Division Bench, we dismiss this tax appeal as not maintainable - Decided against Revenue.

Summary

Issues:
1. Appeal against judgment and order dated 14-11-2006 passed by the Customs, Excise and Service Tax Appellate Tribunal.
2. Confiscation of seized goods, recovery of Central Excise duty, and imposition of penalties.
3. Appeal before the Commissioner (Appeals) and subsequent appeal before the Tribunal.
4. Applicability of Circular dated 17-8-2011 regarding tax appeals involving duty amount below Rs. 10 lakh.

Analysis:
The appellant filed an appeal challenging the judgment and order dated 14-11-2006 passed by the Customs, Excise and Service Tax Appellate Tribunal. The show cause notice issued to the respondent sought to levy Central Excise duty and recover a significant amount from the respondent, including penalties. The adjudicating authority's order-in-original confirmed the Central Excise duty and imposed substantial penalties on the respondent unit and its proprietor. The respondent then appealed to the Commissioner (Appeals), who set aside the order-in-original. Subsequently, the appellant appealed to the Tribunal, which confirmed the order-in-appeal. The appellant, being dissatisfied with the Tribunal's decision, filed the present appeal challenging the same.

The amount of excise duty involved in the appeal was below Rs. 10.00 lakh. Citing a precedent set by a Division Bench in a previous case, where it was held that tax appeals involving duty amounts below Rs. 10 lakh are not maintainable as per a Circular dated 17-8-2011, the High Court dismissed the present tax appeal on the grounds of non-maintainability. The Court applied the Circular to the pending appeal and concluded that since the duty amount in this case was below Rs. 10 lakh, the appeal was not maintainable based on the precedent established by the Division Bench.