The Principal Commissioner vs. M/S Apotex Pharmacehem INDIA PVT LTD

Held

The Court held that the appeal filed by the Revenue was not maintainable due to the revised monetary limits for filing appeals. The Revenue's counsel submitted that the tax effect involved in the present case was less than the prescribed monetary limit of Rs. 50,00,000/- for High Court appeals, and that the case did not fall under the exception category mentioned in the earlier notification. Based on this submission by the Revenue, the Court found no reason to proceed with the appeal on merits. The Court accordingly dismissed the appeal as withdrawn/not pressed, without imposing any costs. The operative direction was to dismiss the appeal.

Facts

The Principal Commissioner of Central Excise, Bangalore I Commissionerate, filed an appeal against an order passed by the CESTAT. The appeal was filed under Section 35G of the Central Excise Act. The revenue sought to set aside the CESTAT's final order and restore an earlier order passed by the Assistant Commissioner. However, subsequent to the filing of the appeal, the Central Board of Indirect Taxes & Customs issued instructions on July 11, 2018, revising the monetary limits for filing appeals. The revised limit for High Courts was set at Rs. 50,00,000/-. The revenue's counsel submitted that the present appeal was not maintainable as the tax effect was below this revised limit and did not fall under any exceptions.

Key Issues

1. Whether the present appeal filed by the Revenue is maintainable in light of the revised monetary limits for filing appeals before the High Courts, as stipulated by the Central Board of Indirect Taxes & Customs vide Instruction dated 11.07.2018? 2. Whether the tax effect involved in the present case is below the revised monetary limit of Rs. 50,00,000/- for High Court appeals, making the appeal not maintainable? Contentions of the Revenue: The Revenue argued that the Instruction dated 11.07.2018, which raised the monetary limit for filing appeals before High Courts to Rs. 50,00,000/-, renders the present appeal not maintainable. They contended that the tax effect in this case is below the prescribed limit and that the case does not fall under the exception category mentioned in the notification dated 17.08.2011. Therefore, the Revenue requested permission to dismiss the appeal as withdrawn or not pressed. Contentions of the Respondent (Assessee): The judgment does not record any specific arguments made by the respondent.