Pr Commissioner CGST Delhi North vs. M/S Hindustan Perfumers

Held

The Court decided to close the appeal. The reasoning was based on the appellant's (revenue's) own admission that the tax impact was below the monetary limit fixed by the circular dated August 22, 2019. This circular likely dictates that appeals with a tax impact below a certain threshold should not be pursued. The Court noted that the Board had advised against filing an SLP in a similar case due to the monetary limit, but suggested keeping the question of law open. Accordingly, the Court closed the present appeal, explicitly stating that the question of law would be kept open. No specific operative directions were issued beyond closing the appeal.

Facts

The appellant, Principal Commissioner CGST Delhi North, challenged an order concerning M/s Hindustan Perfumers. The revenue acknowledged that the tax impact in this case was below the monetary limit stipulated by a circular dated August 22, 2019. This circular likely sets a threshold below which appeals are not to be filed. The Court noted that a similar matter, CEAC 5/2022, had been closed by them. The revenue had proposed filing a Special Leave Petition (SLP) in that instance. However, the Central Board of Indirect Taxes and Customs (Board), by communication dated October 19, 2022, advised against filing an SLP due to the monetary limit, suggesting the question of law could be kept open.

Key Issues

1. Whether the appeal filed by the revenue is maintainable given that the tax impact is below the monetary limit prescribed by the circular dated August 22, 2019? The appellant (revenue) argued that while the tax impact is below the monetary limit, the question of law involved is significant and should be kept open for future consideration, as per Section 35R of the Central Excise Act, 1944. The respondent (assessee) did not present any arguments as the appeal was closed based on the revenue's concession regarding the monetary limit. The Court had to decide whether to proceed with the appeal or close it, considering the revenue's own circular and the principle of keeping questions of law open.