The Commissioner CGST, Jalandhar vs. M/S Pensla Exports PVT LTD

Facts

The Commissioner, CGST, Jalandhar (appellant) filed an appeal before the High Court of Punjab & Haryana at Chandigarh against an order dated 27.11.2019 passed by the CESTAT in Appeal No.E/60051/2019. The respondent is M/s Pensla Exports P Ltd. The appeal was filed under Section 35G of the Central Excise Act, 1944. The appellant's counsel stated that the tax effect involved in the appeal was under Rs.2 crores and that she had specific instructions to withdraw the appeal in view of a C.B.I. & C. Instruction F. No.CBIC-160390/20/2024-JC-CBEC, dated 06.08.2024.

Held

The Court held that the appeal is to be dismissed as withdrawn. This decision was based on the submission made by the appellant's counsel, who stated that the tax effect involved in the appeal was under Rs.2 crores and that she had specific instructions to withdraw the appeal in view of the C.B.I. & C. Instruction F. No.CBIC-160390/20/2024-JC-CBEC, dated 06.08.2024. The instruction issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs, Government of India, guides the withdrawal of such appeals. Consequently, the appeal was dismissed as withdrawn, and any pending applications were also disposed of.

Key Issues

1. Whether the appeal filed by the Commissioner, CGST, Jalandhar is to be dismissed as withdrawn in light of the C.B.I. & C. Instruction dated 06.08.2024, given that the tax effect is below Rs.2 crores? The appellant argued that as per the C.B.I. & C. Instruction F. No.CBIC-160390/20/2024-JC-CBEC, dated 06.08.2024, appeals with a tax effect below Rs.2 crores are to be withdrawn. The appellant's counsel explicitly stated having instructions to withdraw the appeal on this basis. The respondent did not present any arguments as the appeal was withdrawn by the appellant.