Commissioner CGST And Central Excise Nashik Commissionerate, Nashik vs. M/S Eaton Industrial Systems PVT LTD., Ahmednagar

Held

The Court allowed the appeal to be withdrawn and disposed of. The reasoning was based on the purshis filed by the appellant, which invoked Instruction F. No. 390/Misc/116/2017-JC. This instruction mandates that appeals with a revenue implication below Rs. 50 Lakhs should not be prosecuted and should be withdrawn. Since the liability in this case was stated to be below Rs. 50 Lakhs, the Court accepted the appellant's request to withdraw the appeal. The ratio decidendi is that High Courts will permit withdrawal of appeals by the revenue when specific departmental instructions, like the one cited, direct such withdrawal based on monetary limits.

Facts

The Commissioner of CGST & Central Excise, Nashik (Appellant) filed Central Excise Appeal No. 12 of 2018 against M/s Eaton Industrial Systems Pvt. Ltd., Ahmednagar (Respondent). The appellant's counsel placed on record a purshis dated July 31, 2018. This purshis stated that the liability involved in the matter was below Rs. 50 Lakhs. Consequently, as per Instruction F. No. 390/Misc/116/2017-JC issued by the Central Board of Excise and Customs, New Delhi, the appeal should not be prosecuted and should be withdrawn. The High Court took the purshis on record.

Key Issues

1. Whether the appeal should be withdrawn and disposed of in light of the Instruction F. No. 390/Misc/116/2017-JC issued by the Central Board of Excise and Customs, New Delhi, when the liability involved is below Rs. 50 Lakhs? The Appellant argued that as per the aforementioned instruction, appeals involving a liability below Rs. 50 Lakhs should not be prosecuted and should be withdrawn. Therefore, the appeal should be allowed to be withdrawn and disposed of. The Respondent's arguments are not recorded in the judgment.