Commissioner Of Central Excise, Ldh vs. M/S Abc Papers Saila Khurad, Hoshiarpur

Facts

The Commissioner CGST & CE Commissionerate, Jalandhar (appellant) filed an appeal under Section 35G of the Central Excise Act, 1944, challenging the Final Order No.126-129/2010 EX (DB) dated 02.02.2010, passed by the Customs, Excise & Services Tax Appellate Tribunal (CESTAT), New Delhi. The respondent is M/s ABC Papers, Shaila Khurad, Hoshiarpur. The appeal was filed against a decision of the CESTAT concerning excise duty. The appellant's counsel stated that the tax effect involved in the appeal was under Rs.2 crores.

Held

The Court held that the appeal should be dismissed as withdrawn. The reasoning was based on the submission made by the learned counsel for the appellant, who stated that the tax effect involved was under Rs.2 crores and, in accordance with Circular No.9 of 2024 dated 17.09.2024 issued by the Ministry of Finance, Department of Revenue, CBDT, Government of India, the appellant had specific instructions to withdraw the appeal. The Court accepted this submission and accordingly dismissed the appeal. The ratio decidendi is that appeals with a tax effect below a certain threshold, as stipulated by government circulars, can be withdrawn by the revenue. The operative direction was the dismissal of the appeal as withdrawn.

Key Issues

1. Whether the appeal filed by the appellant is maintainable in light of the tax effect involved and the instructions issued by the Ministry of Finance. The appellant argued that as the tax effect involved in the appeal was under Rs.2 crores, they had specific instructions to withdraw the appeal in view of Circular No.9 of 2024 dated 17.09.2024 issued by the Ministry of Finance, Department of Revenue, CBDT, Government of India. The respondent did not present any arguments as the appeal was withdrawn by the appellant.