Principal Commissioner CGST And Central Excise vs. Texmo Pipes And Products LTD.
Held
The Court held that the appeal is liable to be withdrawn because its valuation is less than the enhanced monetary limit for filing appeals to the High Court, as stipulated by the order dated August 6, 2024, issued by the Central Board of Indirect Taxes and Customs. This order, exercising powers under Section 35R of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994, set a new threshold for appeals. The Court allowed the appellant's application for withdrawal. The ratio decidendi is that appeals falling below the prescribed monetary limit, as revised by departmental instructions, are to be withdrawn. The operative direction was that the appeal is dismissed as withdrawn. However, the Court clarified that the question of law raised in the appeal shall remain open to be raised at the appropriate stage.
Facts
This is a Central Excise Appeal filed by the Principal Commissioner CGST and Central Excise against Texmo Pipes and Products Ltd. The appeal was filed before the High Court of Madhya Pradesh at Indore. During the pendency of the appeal, the Revenue Department, Central Board of Indirect Taxes and Customs, enhanced the monetary limit for filing appeals against CESTAT orders to the High Court and Supreme Court, effective from August 6, 2024. The valuation in the present appeal was less than Rs. 2 Crores. Consequently, the appellant filed an application (I.A. No.11239/2024) seeking withdrawal of the appeal.
Key Issues
1. Whether the appeal, having a valuation less than the enhanced monetary limit for filing appeals to the High Court, is liable to be withdrawn? Petitioner's Argument: The petitioner (Principal Commissioner CGST and Central Excise) argued that in light of the enhanced monetary limit for filing appeals to the High Court, which was made effective from August 6, 2024, and considering the valuation in the present appeal is less than Rs. 2 Crores, the appeal is liable to be withdrawn. They relied on the order dated 06.08.2024 issued by the Central Board of Indirect Taxes and Customs in exercise of powers conferred under Section 35R of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. Revenue/State's Argument: No argument was recorded for the Revenue/State in the judgment.
Sections Cited
Section 35R, Section 83
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER Per: Justice Sushrut Arvind Dharmadhikari During pendency of this appeal, vide order dated 06.08.2024 the Revenue Department, Central Board of Indirect Taxes and Customs in exercise of powers conferred under Section 35 R of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 has enhanced the monetary limit for filing the appeal against the order of CESTAT in a High Court as well as Supreme Court.
In the present appeal the valuation is less than Rs.2 Crores, therefore, this present appeal is liable to be withdrawn. Hence, the appellant has filed an application i.e., I.A. No.11239/2024 seeking withdrawal of this appeal.
In view of above, I.A. No.11239/2024 is allowed. As a consequence, this appeal is dismissed as withdrawn. It is however made clear 1 CEA-64-2019 NEUTRAL CITATION NO
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Reproduced from the public record of the Madhya Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.