The Commissioner Of Central Excise, Ahmedabad - Ii vs. P.T. Steel Industries Limited

Held

The Court held that permission to withdraw the appeal, as prayed for by the appellant, is granted. The appeal is disposed of as withdrawn. The reasoning is based on the appellant's submission that the disputed duty amount of Rs. 33,19,000/- is less than the monetary limit of Rs. 1,00,00,000/- stipulated under the Board's instruction dated 22.08.2019. The ratio decidendi is that a tax appeal can be withdrawn by the revenue if it falls below the prescribed monetary limit for appeals, as per departmental instructions. The Court also noted that if there is any error in the computation of the tax effect or if the Board's instruction is not applicable for any reason, it would be open for the appellant to seek revival of the appeal. No specific issue was left undecided.

Facts

The Commissioner of Central Excise, Ahmedabad - II (the appellant) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against P.T. Steel Industries Limited (the opponent). The appeal concerned a disputed duty amount of Rs. 33,19,000/-. The appellant's counsel placed on record a communication from the Assistant Commissioner (Legal), CGST, Ahmedabad South, dated 04.12.2019. This communication instructed the withdrawal of the appeal as the disputed duty amount was below the monetary limit of Rs. 1,00,00,000/- stipulated under a Board's instruction dated 22.08.2019. The appellant's counsel then sought permission to withdraw the appeal.

Key Issues

1. Whether the Tax Appeal should be permitted to be withdrawn by the appellant, the Commissioner of Central Excise, Ahmedabad - II, based on a subsequent Board's instruction setting a monetary limit for appeals? The appellant argued that the appeal should be withdrawn as the disputed duty amount of Rs. 33,19,000/- falls below the monetary threshold of Rs. 1,00,00,000/- prescribed by the Board's instruction dated 22.08.2019 (F.No.390/Misc/116/2017-JC). The appellant's counsel formally sought permission to withdraw the appeal on this basis. The respondent, P.T. Steel Industries Limited, did not record any specific arguments against the withdrawal in the judgment. The judgment does not record any arguments from the respondent.