Commissioner Of Central Excise Customs & Service vs. M/S. Sun Micro Systems (I) PVT LTD

Held

The Court held that the appeal filed by the Revenue was not maintainable due to the tax effect being below the revised monetary limit of ₹50,00,000/- for appeals before the High Courts, as stipulated by the Central Board of Indirect Taxes & Customs (CBIC) instructions dated July 11, 2018. The Court noted that the Appellant-Revenue themselves submitted that the present case did not fall under any exception category that would allow it to be pursued irrespective of the monetary limit. Consequently, the Court permitted the appeal to be dismissed as withdrawn or not pressed. No costs were awarded.

Facts

The Commissioner of Central Excise, Customs & Service Tax (Appellant-Revenue) filed an appeal against an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The Respondent is M/s. Sun Micro Systems (I) Pvt. Ltd., now represented by M/s. Oracle (I) Pvt. Ltd. The appeal was filed under Section 35G of the Central Excise Act, 1944. Subsequently, the Central Board of Indirect Taxes & Customs (CBIC) issued instructions on July 11, 2018, raising the monetary limit for filing appeals before High Courts to ₹50,00,000/-. The Appellant-Revenue submitted that the tax effect in the present case was less than this revised limit and did not fall under any exceptions. Therefore, they sought permission to dismiss the appeal as withdrawn or not pressed.

Key Issues

1. Whether the present appeal, filed before the revised monetary limits were issued, is maintainable given the tax effect is below the new threshold of ₹50,00,000/- for High Court appeals, as per the CBIC instructions dated July 11, 2018? (Question of law) Contentions: Petitioner/Appellant (Revenue): The appeal is not maintainable because the tax effect involved is less than the prescribed monetary limit of ₹50,00,000/- for High Court appeals. The case does not fall under the exception category mentioned in the notification dated August 17, 2011, referenced in the CBIC instructions. Therefore, the appeal should be dismissed as withdrawn or not pressed. Respondent: No arguments recorded.