2017 (12) TMI 1494 - HC - Central Excise

Maintainability of appeal - Penalty - Valuation - Held that - the decision in the case of Commissioner of Customs, Central Excise and Service Tax, Indore Versus Avtec Limited 2017 (12) TMI 1424 - MADHYA PRADESH HIGH COURT shall apply mutatis-mutandis in the present case also, where it was held that if multiple questions are involved in the matter, then the department has to raise all these issues before the Supreme Court by filing an appeal under Section 35L of the Central Excise Act, 1944 - present appeal also dismissed following the above case.

Summary

Issues:
1. Appeal against setting aside of penalty imposed by the Customs, Excise & Service Tax Appellate Tribunal.
2. Interpretation of Section 35-L of the Central Excise Act, 1944 regarding raising multiple questions in an appeal.
3. Applicability of Section 35G of the Central Excise Act, 1944 in relation to appeals before the Supreme Court and High Court.

Analysis:
1. The judgment addressed an appeal filed by the Department against the setting aside of a penalty imposed on the respondent by the Customs, Excise & Service Tax Appellate Tribunal. The Supreme Court's decision in a related matter highlighted the importance of recalculating the quantification for loading towards drawing and design supplied by a third party. The respondent's appeal was pending before the Supreme Court, emphasizing the need for the Department to raise all relevant issues in such cases.

2. The judgment delved into the interpretation of Section 35-L of the Central Excise Act, 1944, focusing on the requirement to raise multiple questions in an appeal before the Supreme Court. Citing legal precedents, including the case of Navin Chemicals Manufacturing and Trading Company Limited v. Collector of Customs, the judgment emphasized that questions related to the rate of duty, valuation of goods, and classification directly impact the assessment process. The test for determining the appeal jurisdiction revolved around the direct and proximate relation of the question to the rate of duty or value of goods.

3. Regarding the applicability of Section 35G of the Central Excise Act, 1944, the judgment discussed the scope of appeals before the Supreme Court and High Court. Referring to the case of Commissioner of Service Tax v. Ernst & Young Private Limited, the judgment highlighted that appeals to the High Court are limited when the order relates to the determination of questions regarding the rate of duty or valuation of goods. The nature of the order passed by the Tribunal determines the appeal's maintainability, emphasizing the importance of the order's content over the issues raised in the appeal.

In conclusion, the judgment dismissed the Central Excise Appeal No.44/2017 with the liberty to challenge the order by filing an appeal under Section 35L of the Central Excise Act, 1944 before the Apex Court. The decision in this case was to be applied mutatis-mutandis in another related case, leading to the disposal of Central Excise Appeal No.29/2016 in line with the earlier order.