Commissioner Of Central Excise vs. M/S. Indian Oil Corporation Limited

Held

The Court granted the appellant's prayer to withdraw the appeal. The reasoning was based on the appellant's submission that the appeal fell below the monetary limits fixed by the Central Board of Indirect Taxes and Customs (CBIC) vide instructions dated 06.08.2024. The Court placed the submission on record and granted the leave to withdraw. Consequently, the appeal was disposed of as withdrawn. Any pending interlocutory applications were also closed, and there was no order as to costs. The ratio decidendi is that High Courts will permit withdrawal of appeals if the appellant demonstrates compliance with administrative instructions from the apex tax authority regarding monetary limits for pursuing litigation.

Facts

This is a Central Excise Appeal No. 77 of 2006 before the High Court. The appellant, represented by Sri Y.N. Vivekananda, learned Senior Standing Counsel for CBIC, sought leave to withdraw the appeal. The reason for withdrawal was that the appeal fell below the monetary limits fixed by the Central Board of Indirect Taxes and Customs (CBIC) in their instructions dated 06.08.2024. A letter dated 17.10.2024 from the office of the Commissioner of Central Tax, GST Commissionerate, Tirupati, was filed, confirming these instructions to withdraw the appeal.

Key Issues

1. Whether the appeal should be permitted to be withdrawn by the appellant on the grounds of falling below the monetary limits prescribed by the Central Board of Indirect Taxes and Customs. Arguments: Petitioner/Appellant: The appellant, through its counsel, argued that the appeal should be withdrawn as per the instructions issued by the CBIC, which mandate withdrawal of appeals falling below specified monetary limits. They relied on the instructions in File No. CBIC-160390/20/2024-JC-CBEC dated 06.08.2024 and a supporting letter from the GST Commissionerate, Tirupati. Revenue/State: No arguments were recorded for the revenue or State in the judgment.