CGST And Central Excise vs. Flexituff International LTD.
Held
The Court allowed the application for withdrawal of the appeal. The reasoning was based on the Circular dated 06.08.2024, which established a monetary limit of Rs. 2 crore for filing appeals before the High Court in legacy Central Excise & Service Tax matters. Since the present appeal did not meet this stipulated tax effect, the appellant was permitted to withdraw it. The Court explicitly stated that the question of law remains open to be decided in appropriate future proceedings. The appeal was accordingly dismissed as withdrawn, with no decision on the merits of the underlying tax dispute.
Facts
The appellant, CGST and Central Excise, filed Central Excise Appeal No. 3 of 2023 before the High Court of Madhya Pradesh. The appeal was against Flexituff International Ltd. The appellant sought to withdraw the appeal based on a Circular dated 06.08.2024, which set monetary limits for filing appeals by the department before CESTAT, High Court, and Supreme Court in legacy Central Excise & Service Tax matters. The Circular stipulated a minimum tax effect of Rs. 2 crore for appeals before the High Court. The appellant contended that the present appeal did not meet this monetary threshold.
Key Issues
1. Whether the appeal filed by the appellant is maintainable before this Court in light of the Circular dated 06.08.2024 setting monetary limits for filing appeals by the department. The appellant argued that the Circular dated 06.08.2024 mandates a minimum tax effect of Rs. 2 crore for appeals to be filed before the High Court. Consequently, the present appeal, not meeting this threshold, should be withdrawn. The revenue (appellant) relied on this Circular to justify the withdrawal. The respondent (Flexituff International Ltd.) did not record any specific arguments against the withdrawal, but the Court considered the application for withdrawal.
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Cause title — parties, addresses and appearances
ORDER Per: Justice Sushrut Arvind Dharmadhikari Heard on I.A.No.11238/24, application for withdrawal of the appeal on the ground of monetary limits being set vide Circular dated 06.08.2024 for filing appeals by the department before CESTAT, High Court and Supreme Court in legacy Central Excise & Service Tax. As per the Circular, the minimum tax effect before the High Court is Rs.2 crore, therefore, this appeal is withdrawn leaving the question of law open to be decided in appropriate proceedings. On due consideration, the application is allowed and the appeal is dismissed as withdrawn. hk/
1 CEA-3-2023 NEUTRAL CITATION NO. 2025:MPHC-IND:3074 Signed by: HARIKUMAR NAIR Signing time: 06-02-2025 19:00:06 Signature Not
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