Principal Commissioner Of CGST And Central Excise Kolkata North GST Commissionerate vs. M/S Desco Paints Corporation

Facts

The appeal was filed by the Principal Commissioner of CGST and Central Excise, Kolkata North GST Commissionerate (the revenue) against an order passed by the learned Tribunal. The petitioner is M/s Desco Paints Corporation. The tax effect involved in the appeal was stated to be below the threshold limit prescribed by the department for prosecuting appeals. The revenue had issued written instructions, which were kept on record. The appeal was heard by the High Court at Calcutta.

Held

The Court held that the revenue cannot prosecute the appeal any further because the tax effect involved is below the threshold limit. The reasoning is based on the undisputed fact of the low tax effect, which, according to departmental instructions, prevents the revenue from pursuing appeals. The Court did not decide the substantial questions of law, explicitly stating that they are left open. The appeal is disposed of on the ground of low tax effect. Consequently, the connected application stands closed. No specific operative directions were issued beyond disposing of the appeal.

Key Issues

1. Whether the revenue is barred from prosecuting the appeal due to the tax effect being below the prescribed threshold limit, as per departmental instructions? The revenue argued that the appeal should be heard on merits, as it involves substantial questions of law. However, the judgment does not explicitly record arguments from the revenue regarding the tax effect threshold. The petitioner's arguments are not recorded in the judgment. The court's decision appears to be based on the undisputed fact of the low tax effect.