Principal Commissioner Of CGST And Central Excise vs. Ms Sbw Udyog Limited

Held

The Court granted the appellant's request for leave to withdraw the Tax Appeal. The appeal was disposed of as withdrawn. The Court explicitly stated that the question of law involved in the matter was left open. This means that the withdrawal does not prejudice the respondent or set any precedent on the substantive legal issues that might have been argued had the appeal proceeded. The reasoning for granting the withdrawal was solely based on the appellant's submission regarding the tax amount being below the threshold limit stipulated in the CBIC circular, which is a policy decision by the revenue authorities to limit litigation.

Facts

The Principal Commissioner of CGST & Central Excise, Ranchi (appellant) filed a Tax Appeal before the Jharkhand High Court against M/s SBW Udyog Limited / Shyam Biri Works Limited (respondent). The appeal concerned a dispute related to Goods and Services Tax (GST). The appellant, through their counsel, sought leave to withdraw the appeal. The reason cited for withdrawal was that the tax amount involved in the matter was below the threshold limit of rupees one crore, as per a circular issued by the Central Board of Indirect Taxes and Customs (CBIC). The respondent was represented by their counsel.

Key Issues

1. Whether the appellant is entitled to withdraw the Tax Appeal on the ground that the tax amount involved is below the threshold limit specified in a CBIC circular. The appellant argued that they should be permitted to withdraw the appeal as the tax amount in dispute falls below the monetary threshold set by the CBIC for filing appeals. This threshold is intended to streamline litigation and focus resources on significant tax disputes. The appellant relied on the circular issued by the CBIC to support their request for withdrawal. The respondent did not record any specific arguments against the withdrawal in the judgment. The court was primarily presented with the appellant's request for withdrawal based on the CBIC circular.