The Commissioner vs. Mukesh Maheshwari General Manager Commercial

Held

The High Court allowed the review petitions and recalled its order dated 11.02.2025 passed in Central Excise Appeal Nos. 32/2017 & 31/2017. The Court reasoned that the appeals were dismissed based on a circular regarding monetary limits, but the petitioner demonstrated that the tax effect was significant (over Rs. 6 crores) and that a related appeal was pending. The Court also noted that similar appeals had been restored previously. Therefore, the Court found it appropriate to restore the dismissed appeals to their original number for a decision on merits. The Court directed that a photocopy of the order be placed in the records of the relevant review petition and appeals. No specific issue was expressly left undecided.

Facts

The Commissioner of Customs, Central Excise and Service Tax (now CGST and Central Excise) filed two review petitions (RP-614 & 613 of 2025) seeking review of an order dated 11.02.2025. This prior order had dismissed Central Excise Appeal Nos. 32/2017 and 31/2017, treating them as below the prescribed monetary limit for appeals as per a circular dated 06.08.2024. The appeals were dismissed with liberty to the appellants to seek restoration if a cause of action survived. The petitioner argued that the tax effect in these appeals, along with another pending appeal, exceeded Rs. 6 crores, thus warranting a decision on merits. The petitioner also highlighted that a common show-cause notice was issued to an assessee company and its directors, and while the Order-in-Original dropped the notice, the CESTAT confirmed it. Subsequently, three appeals were filed before the ITAT, which were dismissed. Three Central Excise Appeals were then filed before the High Court. One appeal against the assessee-company (CEA No.34/2017) is already pending. The petitioner contended that these appeals should be heard jointly and cited a previous order dated 10.10.2018 that restored similar appeals.

Key Issues

1. Whether the Central Excise Appeals Nos. 32/2017 and 31/2017, which were dismissed by the High Court on 11.02.2025 as being below the prescribed monetary limit as per a circular dated 06.08.2024, should be restored and heard on merits, considering the petitioner's contention that the tax effect exceeds Rs. 6 crores and that a related appeal is pending. Petitioner's Arguments: - The tax effect in the appeals is substantial (over Rs. 6 crores), justifying a hearing on merits. - A common show-cause notice was issued to the assessee company and its directors, and the appeals before the High Court stem from the dismissal of ITAT appeals. - One related appeal (CEA No.34/2017) is already pending before the High Court, necessitating a joint hearing of all three appeals. - A previous order dated 10.10.2018 had restored similar appeals, indicating a precedent for restoration. Revenue/State's Arguments: - The judgment records no specific arguments from the revenue/State side in opposition to the review petitions.