CGST And Central Excise vs. Ruchi Infrastructure Limited

Held

The Court allowed the application for withdrawal of the appeal. The reasoning was based on the fact that the monetary limit for filing appeals to the High Court had been enhanced, and the valuation in the present appeal was below this new threshold. Consequently, the appeal was dismissed as withdrawn. However, the Court explicitly clarified that the question of law raised in the appeal would remain open to be raised at a subsequent stage. No specific finding was made on the merits of the original dispute, as the appeal was disposed of on procedural grounds related to the monetary limit.

Facts

This matter concerns Central Excise Appeal No. 7 of 2020 filed by the Revenue Department (CGST and Central Excise) against Ruchi Infrastructure Limited. The appeal was filed before the Madhya Pradesh High Court at Indore. During the pendency of the appeal, the Central Board of Indirect Taxes and Customs, in exercise of powers under Section 35R of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994, enhanced the monetary limit for filing appeals to the High Court and Supreme Court. The valuation in the present appeal was less than ₹2 crore. Consequently, the appellant filed an application seeking withdrawal of the appeal.

Key Issues

1. Whether the appeal is maintainable before the High Court given the enhanced monetary limit for filing appeals, as stipulated by the order dated 06.08.2024 issued by the Central Board of Indirect Taxes and Customs under Section 35R of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994? Petitioner's Contention: The Revenue Department argued that the valuation in the present appeal is less than ₹2 crore, which is now below the enhanced monetary limit for filing appeals to the High Court. Therefore, the appeal is liable to be withdrawn. Revenue's Contention: Not recorded, as the Revenue is the appellant and sought withdrawal.