Custom, Excise & Service Tax Tribunal
Commissioner Of Central Excise, ... vs M/S. Eurotex Industries & Exports Ltd on 7 January, 2016
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL WEST ZONAL BENCH AT MUMBAI COURT NO. IV Appeal No. E/949/07-Mum [Arising out of Order-in-Appeal No. P-II/BKS/36/2007 dated 16/03/2007 passed by the Commissioner (Appeals), Central Excise, Pune-II] For approval and signature: Honble Mr. Ramesh Nair, Member (Judicial) Honble Mr. Raju, Member (Technical) =======================================================
1. Whether Press Reporters may be allowed to see : No
the Order for publication as per Rule 27 of the
CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the :
CESTAT (Procedure) Rules, 1982 for publication
in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy : seen
of the Order?
4. Whether Order is to be circulated to the Departmental: Yes
authorities?
=======================================================
Commissioner of Central Excise, Pune-II
:
Appellant
VS
M/s. Eurotex Industries & Exports Ltd.
:
Respondent
Appearance
Shri V.K. Agarwal, A.D.C. (AR) for the Appellant
Shri T. Chandran Nair, Advocate for the Respondent
CORAM:
Honble Mr. Ramesh Nair, Member (Judicial)
Honble Mr. Raju, Member (Technical)
Date of hearing: 07/01/2016
Date of decision: 07/01/2016
ORDER NO.
Per : Ramesh Nair
This appeal filed by the Revenue involving duty of Rs. 1,78,445/-, which is less than Rs. Five Lakhs. In terms of Government Litigation Policy Vide F. No. 390/MISC/163/2010/JC dated 17.08.2011 Revenue is not supposed to file appeal against order of the Commissioner (Appeals) if amount involved is less than Rs. 5 Lakhs. As regard the appeal which is filed before the issuance of litigation policy dated 17.08.2011. The Honble High Court of Karnataka judgment in the case of Commissioner of C.Ex. Bangalore-III V/s Presscom Products [2011(268) E.L.T. 344(Kar.)] and Honble High Court Gujarat judgments- Commissioner of C.Ex. & Cus., Surat-I V/s Shreenath Fabrics [2014(303) E.L.T. 540(Guj.)] and Commissioner of C.Ex. & Cus., Vadodara-I V/s Pharmanza Herbal Pvt. Ltd. [2014(306) E.L.T. 153(Guj.)] has held that the monitory limit prescribed under circular shall also be applicable in the appeal which is filed prior to issuance of aforesaid litigation of policy. Operative parts of the Honable High Court orders are reproduced below:
Commissioner of C.Ex. Bangalore-III V/s Presscom Products [2011 268) E.L.T. 344 (Kar.)] Appeals to Appellate Tribunal and High Court National Litigation Policy Appeal filed before monetary limits for such appeals was fixed by CBEC Circular, involving amounts below limits so fixed HELD : Assessee could not be denied benefit of the CBEC Circular, even though substantial question of law involved in appeal was answered against them. [para 19] Commissioner of C.Ex. & Cus., Surat-I V/s Shreenath Fabrics [2014 (303) E.L.T. 540 (Guj.)] Appeal by Department before High Court Maintainability of considering monetary limit prescribed therefore vide Department circular Amount involved in appeal filed by Department was less than 10 lakhs, which was the monetary limit fixed vide CBEC. Instruction F. No. 390/MISC/163/2010/JC dated 17.08.2011 Applicability of circular challenged on ground that appeal filed on 1.4.2011 However, when appeal came up for consideration, the circular was in force Department being bound by its own circulars and instructions, held that the monetary limit applied and instant appeal dismissed solely on ground of such monetary limit Rule 14 of Cenvat Credit Rules, 2004 Section 11A of Central Excise Act, 1944. [paras 4.3, 4.4, 5] Commissioner of C.Ex. & Cus., Vadodara-I V/s Pharmanza Herbal Pvt. Ltd. [2014 (306) E.L.T. 153 (Guj.)] Appeal to High Court Monetary limit prescribed therefore vide Department Circulars and Instructions CBEC Instruction F. No. 390/MISC/163/2010/JC dated 20.10.2010, fixed monetary limit of 2 lakhs provided that where the duty involved or total revenue including amount of penalty is below that limit, the Department would not file the appeal, but the limit was enhanced to 10 lakhs in the subsequent CBEC Instruction F. No. 390/MISC/163/2010/JC dated 17.08.2011 Appeal in instant case was filed on 15.09.2010 i.e. before the date of the circular, however it came up for hearing after coming into force of the Circular dated 20.10.2010 Amount involved being Rs. 50,904/- i.e. less than prescribed limit, merits of appeal not considered and appeal by Department dismissed Section 35G of Central Excise Act, 1944 Rule 5 of Cenvat Credit Rules, 2004. [paras 4, 4.1, 5, 6.1, 7] In view of the above settled legal position the present appeal involving amount Rs. 1,78,445/-, which is less than threshold limit of Rs. 5 lakhs is not maintainable and same is dismissed without going into merit of the case.
(Operative order pronounced in court) Raju Member (Technical) Ramesh Nair Member (Judicial) saifi 4 Appeal No. E/949/07-Mum