Friday, 18 April 2014

The Department has to follow prescribed monetary limits for filing appeal in various Courts having regard to the Circulars in place which are binding on the department.

2014(33) STR 124 (Guj) Commissioner of C. Ex. & coustoms vs. Stovec industries Ltd.



Facts:
The  respondents    were   engaged   in the  manufacture and export of Rotary Printing Machinery and part thereof aggrieved by the order of CESTAT with  respect to rejection of CENVAT Credit of around Rs. 2,02,472/-, the  department was  in appeal.  The appeal was filed on 5th  August, 2011. The  respondents
contested   that  vide Circular dated  17th  October,  2010, the  Central  Excise  department   was  not  allowed  to file an appeal  if the  duty  involved  was  less than  or equal to  Rs. 2 lakh with  equal  mandatory   penalty and  any other   penalty.  The limit of Rs. 2 lakh was  increased to  Rs. 10 lakh  vide  Circular dated   17th August,   2011.

Held:

In view  of Circular dated   17th  August,  2011 taking  effect  from  1st  September,    2011, the  appeal   could  not be  preferred   bydepartment     in the   High Court.  The appeal, therefore,    was dismissed without going into the substantial   question   of law sincethe department was bound by its own Circulars.

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