Commissioner Of Central Tax vs. Punjab Stainless Steel Industries & Ors.

Held

The Court allowed the withdrawal of the appeal. The reasoning was based on the petitioner's submission that the tax effect of Rs. 20,95,606/- was below the threshold limit prescribed by the instructions dated July 11, 2018. The Court took on record the instructions issued by the Commissioner, Central GST dated August 14, 2018, which supported the withdrawal of appeals with low tax effect. Consequently, the appeal was dismissed for low tax effect. The ratio decidendi is that appeals with a tax effect below the stipulated threshold, as per departmental instructions, are to be withdrawn and dismissed.

Facts

The Commissioner of Central Tax, the petitioner, filed an appeal before the High Court of Delhi. The respondents are Punjab Stainless Steel Industries & Ors. The appeal concerned a tax effect of Rs. 20,95,606/-. The petitioner's counsel submitted instructions to withdraw the appeal, citing the tax effect being below the threshold limit imposed by instructions dated July 11, 2018. A copy of instructions issued by the Commissioner, Central GST dated August 14, 2018, was placed on record.

Key Issues

1. Whether the appeal should be withdrawn and dismissed due to the tax effect being below the prescribed threshold limit, as per the instructions dated July 11, 2018, and August 14, 2018? Petitioner's Contention: The petitioner argued that the tax effect of Rs. 20,95,606/- is below the threshold limit stipulated by the instructions dated July 11, 2018, and therefore, the appeal should be withdrawn. The petitioner relied on the instructions issued by the Commissioner, Central GST dated August 14, 2018, which presumably provide for such withdrawal. Respondents' Contention: No arguments were recorded for the respondents.