2020 (8) TMI 292 - HC - Central Excise

Applicability of instructions F.No.390/Misc/116/2017-JC dated 22.08.2019 to pending appeals - monetary limit fixed for filing appeals - HELD THAT - The Instructions having been made applicable to pending appeals also. In light of the monetary limit having been fixed by the Department indicating that, where the value of subject matter in dispute being less than One Crore, such appeals cannot be prosecuted and in view of the fact that said issues having attained finality before this Court, entertaining of these appeals would be in violation of conditions stipulated under the Instructions F.No.390/Misc/116/2017-JC dated 22.08.2019, issued by Central Board of Indirect Taxes and Customs. Appeal dismissed as not maintainable.

Summary

Issues:
- Correctness and legality of Final Orders passed by CESTAT
- Applicability of departmental instructions for withdrawal of appeals based on monetary value
- Seizure of issues before the Apex Court and the maintainability of present appeals

Analysis:
1. The appeals were filed by the Commissioner of Central Excise challenging the Final Orders of CESTAT. The Tribunal allowed the appeals of the respondents based on the judgment in a specific case. The appellant did not dispute the fact that the appeals were allowed following the law laid down in the mentioned case. However, the appellant argued that the judgment in the said case was pending before the Apex Court, raising a point of contention.

2. The Department of Revenue issued instructions for the withdrawal of appeals pending before judicial forums based on the monetary value involved. The instructions specified a monetary limit for filing appeals before High Courts. The appellant contended that the issues involved in the present appeals were before the Apex Court, making it impossible for the Revenue to withdraw the appeals. The appellant relied on a clause in the instructions that applied to legacy issues related to Central Excise and Service Tax, arguing that it empowered the Revenue to prosecute the appeals.

3. The Court disagreed with the appellant's proposition, emphasizing that the instructions applied to pending appeals as well. Considering the monetary limit set by the Department and the finality of the issues before the Court, the Court concluded that entertaining the appeals would violate the conditions stipulated in the instructions issued by the Central Board of Indirect Taxes and Customs. Consequently, the appeals were dismissed as not maintainable.