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