The Commissioner Of Central ... vs The Customs
2021 Latest Caselaw 4247 Mad

                                                                                 R.C.No.8 of 2008

                                       In the High Court of Judicature at Madras

                                                   Dated : 18.2.2021

                                                        Coram :

                                     The Honourable Mr.Justice T.S.SIVAGNANAM

                                                             and

                                       The Honourable Ms.Justice R.N.MANJULA

                                              Referred Case No.8 of 2008


                     The Commissioner of Central Excise
                     Coimbatore                                                ...Petitioner
                                                      Vs

                     1.The Customs, Excise & Service
                       Tax Appellate Tribunal,
                       South Zonal Bench, Chennai.

                     2.M/s.Shri Vasudeva Textiles Ltd.,
                       Unit-II, Annur, Coimbatore Dist.                        ...Respondents

REFERRED CASE under Section 35H(1) of the Central Excise Act,

1944 against Appeal No.E/404/99 dated 15.6.2001 on the file of the

Customs, Excise and Service Tax Appellate Tribunal, South Zonal

Bench, Chennai.

For Petitioner : Mr.A.P.Srinivas, SSC

https://www.mhc.tn.gov.in/judis/ R.C.No.8 of 2008

Judgment was delivered by T.S.SIVAGNANAM,J

We have heard the learned Senior Standing Counsel for the

petitioner.

2. This referred case by the Revenue challenges the order

passed by the Customs, Excise and Service Tax Appellate Tribunal,

which decided the issue in favour of the assessee.

3. The referred case was filed by the Revenue by raising the

following substantial question of law :

“Whether the Tribunal is correct in admitting the MODVAT Credit on capital goods under Rule 57Q which are used in the manufacture of exempted final products and such final products, for the time being, exempt from the whole of duty leviable thereon or chargeable to nil rate of duty during the period from 01.3.1997 to 31.8.1997 i.e before the insertion of the word 'exclusively' vide Notification No.46/1997 CE(NT) dated 01.9.1997?”

4. The Revenue seeks to withdraw the case on account of low

tax effect in terms of the circular dated 22.8.2019 issued by the

Central Board of Indirect Taxes and Customs. By the said Circular, the

monetary limit for filing or pursuing any matter before the High Court

https://www.mhc.tn.gov.in/judis/ R.C.No.8 of 2008

has been increased to Rs.1 Crore. It is further submitted that the tax

effect in this case is less than the threshold limit.

5. In the light of the above, the referred case is dismissed on the

ground of low tax effect and the substantial question of law raised is

left open. In the event the tax effect is above the threshold limit fixed

in the said circular, liberty is granted to the Revenue to file a petition

before this Court to restore the matter to be heard and decided on

merits.

18.2.2021 To The Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai.

RS

https://www.mhc.tn.gov.in/judis/ R.C.No.8 of 2008

T.S.SIVAGNANAM,J AND R.N.MANJULA,J

RS

R.C.No.8 of 2008

18.2.2021

https://www.mhc.tn.gov.in/judis/