2019 (11) TMI 12 - HC - Central Excise

Permission for withdrawal of appeal - monetary limit involved in the appeal - HELD THAT - It is averred in the application that Central Board of Indirect Taxes and Customs has issued instruction dated 22.8.2019 and revised the monetary limits for filing appeal before this Court to ₹ 1.00 Crore and the said instructions are applicable to pending appeal. It is further averred that office of Commissioner of Central Goods and Service Tax, Mohali has sent instruction to the effect that personal penalty involved in the appeal being ₹ 86, 63, 000/- is below prescribed threshold limit and as such prayer for withdrawal of the appeal. Application dismissed as withdrawn.

Summary

Issues:
1. Appeal under Section 35G of the Central Excise Act, 1944 assailing the order passed by CESTAT remanding the matter back for re-adjudication.
2. Sustainability of the impugned order after a previous judgment was recalled.
3. Allegations of evasion of Central Excise Duty by the respondent Company.
4. Confirmation of demand under Section 11A, imposition of penalty, and appeal filed before CESTAT.
5. Application seeking withdrawal of the appeal based on revised monetary limits for filing appeals.

Issue 1: Appeal under Section 35G of the Central Excise Act, 1944:
The Revenue filed an appeal under Section 35G of the Central Excise Act, 1944, challenging the order passed by CESTAT which set aside the Order-in-Original and remanded the matter back to the Adjudicating Authority for re-adjudication. The appeal raised substantial questions of law regarding the sustainability of the impugned order, perversity, appreciation of evidence, and the capacity of the assessee to manufacture a large quantity of goods.

Issue 2: Sustainability of the impugned order after a previous judgment was recalled:
The appeal questioned the sustainability of the impugned order in light of a previous judgment passed by the Hon'ble High Court, which had been recalled. The Tribunal's reliance on the recalled judgment was a point of contention, raising doubts about the validity of the impugned order.

Issue 3: Allegations of evasion of Central Excise Duty:
The respondent Company was accused of evading Central Excise Duty through clandestine manufacturing and clearance of finished goods. A show cause notice was issued, leading to the Adjudicating Authority confirming the demand under Section 11A, along with interest and penalties. The Director of the company was also penalized, resulting in an appeal before CESTAT.

Issue 4: Confirmation of demand under Section 11A and appeal before CESTAT:
The Adjudicating Authority confirmed the demand of Central Excise Duty against the respondent Company. Subsequently, an appeal was filed before CESTAT, challenging the order and leading to its setting aside, with the matter being remanded for re-adjudication. The appeal before the High Court stemmed from these proceedings.

Issue 5: Application seeking withdrawal of the appeal based on revised monetary limits:
An application was filed seeking permission to withdraw the appeal based on revised monetary limits for filing appeals. The Central Board of Indirect Taxes and Customs had issued instructions revising the monetary limits, making the personal penalty involved in the appeal fall below the prescribed threshold. Consequently, the appeal was dismissed as withdrawn based on the revised limits.

This comprehensive analysis covers the key issues involved in the legal judgment, addressing the grounds of appeal, the allegations of evasion, the implications of revised monetary limits, and the procedural aspects of the case.