Commissioner Of Central Tax GST And Central Excise vs. M/S Sheela Foam Private Limited
Held
The Court held that the appeal was not maintainable. This decision was based on the submission made by the respondent's counsel regarding the tax effect being below the monetary limit of Rs. 1,00,00,000/-. The Court relied on the Circular of the Ministry of Finance dated 22.08.2019, as modified, which stipulates monetary limits for filing appeals. The reasoning was that if the tax effect is below the prescribed limit, the appeal should not be entertained. The ratio decidendi is that appeals filed by revenue authorities that do not meet the minimum monetary threshold, as per departmental circulars, are to be dismissed as not maintainable. The operative direction was the dismissal of the appeal.
Facts
This is a defective Central Excise Appeal filed by the Commissioner of Central Tax, GST and Central Excise against M/s Sheela Foam Private Limited. There was a delay of 50 days in filing the appeal, which was condoned by the Court upon sufficient cause shown in the affidavit. The learned counsel for the respondent (M/s Sheela Foam Private Limited) stated that the tax effect involved in the appeal was below the monetary limit of Rs. 1,00,00,000/-. Consequently, the appeal was dismissed as not maintainable.
Key Issues
1. Whether the appeal is maintainable before this Court given the tax effect involved is below the monetary limit prescribed by the relevant circular. Arguments for the Appellant (Commissioner of Central Tax, GST and Central Excise): The judgment does not record any specific arguments made by the appellant regarding the maintainability of the appeal. Arguments for the Respondent (M/s Sheela Foam Private Limited): The respondent argued that the tax effect in the appeal was below the monetary limit of Rs. 1,00,00,000/-, rendering the appeal not maintainable. This contention was based on a Circular of the Ministry of Finance dated 22.08.2019, as modified.
AI-generated summary — verify with the full judgment below
Court No. - 35 Case :- CENTRAL EXCISE APPEAL DEFECTIVE No. - 27 of 2019 Appellant :- Commissioner Of Central Tax Gst And Central Excise Respondent :- M/S Sheela Foam Private Limited Counsel for Appellant :- Ramesh Chandra Shukla Counsel for Respondent :- Nishant Mishra Hon'ble Bharati Sapru,J.
Hon'ble Rohit Ranjan Agarwal,J.
Order on Section 5 Application There is a short delay of 50 days in filing of this appeal. Cause shown is sufficient; in view of the facts stated in the affidavit filed along with the application the delay in filing the appeal is condoned.
The delay condonation application is allowed.
Order on Memo of Appeal Sri Nishant Mishra, learned counsel for the respondent states that the tax effect involved in this appeal is below the monetary limit of Rs.1,00,00,000/-.
This appeal is, therefore, dismissed as not maintainable in view of the Circular of Ministry of Finance dated 22.08.2019 as modified by F.N.390 /Misc. /116 /2017 -JC/, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs (Judicial Cell).
Order Date :- 13.11.2019 S.P.
The judgment continues below.
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