Commissioner Of Central Excise vs Customs
2021 Latest Caselaw 1842 Mad

                                                                                      R.C.No.6 of 2008

                                      In the High Court of Judicature at Madras

                                                   Dated : 27.01.2021

                                                         Coram :

                                    The Honourable Mr.Justice T.S.SIVAGNANAM
                                                       and
                                     The Honourable Ms.Justice R.N.MANJULA

                                              Referred Case No.6 of 2008


                     Commissioner of Central Excise,
                     Coimbatore.                                               ...Petitioner

                                                             Vs

                     1.Customs, Excise and Service
                        Tax Appellate Tribunal,
                       South Zonal Bench, Chennai-6.

                     2.M/s.Alamelu Balaji Spinning Mills (P) Ltd.,
                       Uthupalayam, Kanjapalli P.O.
                       Annur, Coimbatore Dist.                                 ...Respondents

                               REFERRED CASE under Section 35H(1) of the Central Excise Act,
                     1944 against Final Order No.931/2001 dated 15.06.2001 on the file of the
                     Customs, Excise and Gold (Control) Appellate Tribunal, South Zonal
                     Bench, Chennai.

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


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                                                                                         R.C.No.6 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 Gold (Control) 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 questions of law :

                                         “Whether the Hon'ble CEGAT 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
                                   1.3.1997 to 31.8.1997 i.e., before the insertion of the word
                                   'exclusively' vide Notification No.46/1997 CE (NT) dated
                                   1.9.1997?”

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

                     effect in terms of the circular dated 22.08.2019 issued by the Central Board


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                                                                                        R.C.No.6 of 2008

                     of Indirect Taxes and Customs. By the said Circular, the monetary limit for

                     filing or pursuing any matter before the High Court 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.



                                                                         (T.S.S.,J.)    (R.N.M.,J.)
                                                                                 27.01.2021
                     abr

                     To

                     The Customs, Excise and Gold (Control)
                      Appellate Tribunal, South Zonal Bench, Chennai.




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                                         R.C.No.6 of 2008

                                   T.S.Sivagnanam, J.

and R.N.Manjula, J.

abr

R.C.No.6 of 2008

27.02.2021

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