The Commissioner Of Central Excise, Customs And Service Tax vs. M/S Sujana Universal Industries LTD

Held

The High Court decided to dismiss the appeal as withdrawn. The Court noted a letter received from the Commissioner, Central Tax, Central Excise & Service Tax, Medchal GST Commissionerate, dated October 2020, addressed to the Registrar (Judicial). This letter explicitly requested the withdrawal of the appeal. The Commissionerate's decision to withdraw was based on instructions from the Central Board of Indirect Taxes and Customs (CBIC) regarding revised monetary limits for filing appeals. These instructions, particularly F.No 390/Misc./116/2017-JC/Pt dated 04.04.2018 and F.No 390/Misc./776/2017-JC/Pt dated 22.08.2019, established a monetary threshold of Rs. 100 Lakhs for appeals before the High Courts. The appeal was identified as one where the disputed amount fell below this limit. The Court granted liberty to the appellant to revive the appeal if there was any mistake in the withdrawal process. No costs were awarded. The ratio decidendi is that appeals filed by the Revenue can be withdrawn if they do not meet the revised monetary thresholds set by the CBIC, provided the withdrawal is formally requested and no substantial question of law requiring adjudication remains.

Facts

The Commissioner of Central Excise, Customs and Service Tax, Hyderabad (now Principal Commissioner of Central Tax, Central Excise and Service Tax, Medchal GST Commissionerate) filed an appeal before the High Court against an order of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT). The CESTAT order was preferred against an order passed by the Commissioner, Hyderabad Commissionerate. The appeal concerns the tax period(s) leading up to the orders in original and appellate orders. The amount in dispute is not explicitly stated in the provided text but is implied to be below a certain threshold for the withdrawal of appeals. The procedural history involves an appeal filed under Section 35(G) of the Central Excise Act, 1944, against the CESTAT's final order, which in turn was against the Commissioner's order in original. The High Court received a letter from the Commissionerate requesting the withdrawal of the appeal.

Key Issues

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the revised monetary limits for filing appeals set by the Central Board of Indirect Taxes and Customs (CBIC)? Petitioner's Argument (Revenue): The Revenue, through a letter from the Commissioner, Medchal GST Commissionerate, sought to withdraw the appeal. This withdrawal was based on instructions issued by the CBIC, which revised the monetary limits for filing appeals before the High Courts to Rs. 100 Lakhs. The letter indicated that the appeal was being withdrawn because the duty/penalty amount involved was below this threshold. The Revenue relied on instructions issued by the CBIC, specifically F.No 390/Misc./116/2017-JC/Pt dated 04.04.2018, F No 390/Misc./163/2010-JC dated 17.12.2015 and 17.08.2011, and F.No 390/Misc./776/2017-JC/Pt dated 22.08.2019, which set the monetary limit of Rs. 100 Lakhs for filing appeals in Central Excise and Service Tax cases before the High Court, in terms of Section 35R of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. Respondent's Argument (Assessee): No specific arguments were recorded for the respondent in the provided judgment excerpt.