Principal Commissioner, Goods And Services Tax Commissionerate, Ludhiana vs. M/S Garg Industries PVT LTD Ludhiana

Held

The Court allowed the appeal to be withdrawn. The reasoning was based on the CBIC Circular dated 06.08.2024, which sets a minimum monetary threshold of Rs. 2 Crore for filing appeals before High Courts. The appellant's counsel submitted that this circular is applicable to pending cases. The Court accepted this submission and permitted the withdrawal. The ratio decidendi is that appeals filed by the revenue that do not meet the monetary threshold stipulated in the relevant CBIC circular are to be permitted to be withdrawn. The operative direction was to dismiss the appeal as withdrawn. No issues were expressly left undecided.

Facts

The Principal Commissioner, Goods and Services Tax Commissionerate, Ludhiana (appellant) filed an appeal before the High Court of Punjab and Haryana against an order concerning M/s Garg Industries Pvt. Ltd. (respondent). The specific tax period and the order under challenge are not detailed in the judgment. The appeal was filed by the revenue. The procedural history indicates that the appeal was filed before the High Court. The respondent was not represented before the Court.

Key Issues

1. Whether the appeal filed by the appellant is maintainable in light of the Circular dated 06.08.2024 issued by the Central Board of Indirect Taxes and Customs (CBIC)? The appellant argued that the appeal should be withdrawn in view of the CBIC Circular dated 06.08.2024. This circular, issued under Section 35R of the Central Excise Act, 1944, made applicable to Service Tax via Section 83 of the Finance Act, 1994, fixes a minimum monetary limit of Rs. 2 Crore for filing appeals before High Courts. The appellant contended that this circular is applicable to pending cases as well. The respondent did not present any arguments.