Commissioner CGST Delhi West vs. Ms Hitesh Industries

Held

The Court held that the appeal should be closed. This decision was based on the Appellant's concession that the tax impact was below the monetary limit fixed by the circular dated August 22, 2019. The Court also took into account the communication from the CBIC, which advised against filing an SLP in such cases due to the monetary limit. However, in line with the CBIC's recommendation and Section 35R of the Central Excise Act, 1944, the Court decided to keep the question of law open. The operative direction was to close the appeal.

Facts

The Commissioner CGST Delhi West (Appellant) filed an appeal against an order concerning M/s Hitesh Industries (Respondent). The learned counsel for the appellant conceded that the tax impact in the matter was below the monetary limit fixed by a circular dated August 22, 2019. The Court noted that in a similar case, CEAC 5/2022, which had been closed, a proposal was made to the Central Board of Indirect Taxes and Customs (CBIC) to file a Special Leave Petition (SLP). The CBIC, in its communication dated October 19, 2022, advised against filing an SLP due to the monetary limit, but suggested keeping the question of law open.

Key Issues

1. Whether the appeal should be entertained given that the tax impact is below the monetary limit stipulated by the circular dated August 22, 2019? The Appellant argued that while the tax impact is below the monetary limit, the question of law could be kept open. The Respondent did not present any arguments in this regard, as the appeal was decided based on the Appellant's concession and the Board's communication.