Case Note & Summary
The Commissioner of Customs, Central Excise & Service Tax, Nashik II Commissionerate filed an appeal under Section 35G of the Central Excise Act, 1944 read with CENVAT Credit Rules against M/s Suvarna Sanjivani Sugarcane Transport. The appeal challenged the entitlement of the respondent to exemption from service tax under Notification No. 13/2003-ST dated 20.06.2003 for providing sugarcane harvesting and transport services to sugar manufacturers. Pending admission, the appellant filed a civil application seeking withdrawal of the appeal, citing instructions from the Central Board of Excise & Customs setting monetary limits below which appeals should not be filed, with the objective of reducing litigation. The Court, noting that the appeal was at the admission stage and the policy decision of the department, allowed the application and disposed of the appeal as withdrawn. The substantial question of law was not adjudicated on merits.
Headnote
A) Central Excise - Service Tax - Withdrawal of Appeal - Policy Decision - The appellant-department sought withdrawal of appeal under Section 35G of Central Excise Act, 1944 based on instructions from Central Board of Excise & Customs setting monetary limits for filing appeals to reduce litigation. The Court allowed the withdrawal, noting the policy objective and that the appeal was at admission stage. (Paras 3-5)
B) Service Tax - Exemption - Sugarcane Harvesting and Transport - Notification No. 13/2003-ST - The substantial question of law raised was whether the respondent was entitled to exemption from service tax under Notification No. 13/2003-ST for providing taxable service of sugarcane harvesting and transporting to commercial concerns like sugar manufacturers. However, the appeal was withdrawn before adjudication on merits. (Para 4)
Issue of Consideration
Whether the appellant/department should be permitted to withdraw the appeal based on policy instructions to reduce litigation.
Final Decision
The Court allowed the civil application and disposed of the appeal as withdrawn.
Law Points
- Withdrawal of appeal
- policy decision to reduce litigation
- monetary limits
- Central Excise Act Section 35G
- CENVAT Credit Rules
Case Details
2017 LawText (BOM) (06) 80
Central Excise Appeal No. 06 of 2016 with Civil Application No. 7737 of 2017
Anoop V. Mohta, Sunil K. Kotwal
Mrs. Kalpalata Bharaswadkar for the Appellant, Shri P. A. Pisal for the Respondent
Commissioner of Customs, Central Excise, & Service Tax, Nashik II Commissionerate
M/s Suvarna Sanjivani Sugarcane Transport, Kopergaon
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Nature of Litigation
Appeal under Section 35G of Central Excise Act, 1944 against order regarding service tax exemption.
Remedy Sought
Appellant sought to withdraw the appeal based on policy instructions to reduce litigation.
Filing Reason
Appellant challenged the respondent's entitlement to exemption from service tax under Notification No. 13/2003-ST for sugarcane harvesting and transport services.
Issues
Whether the appeal should be allowed to be withdrawn based on policy decision to reduce litigation.
Submissions/Arguments
Appellant submitted that Central Board of Excise & Customs issued instructions setting monetary limits below which appeals should not be filed, with objective to reduce litigation. Hence, appellant sought withdrawal of appeal at admission stage.
Ratio Decidendi
The Court permitted withdrawal of the appeal based on the department's policy decision to reduce litigation, as the appeal was at admission stage and the instructions from the Central Board of Excise & Customs set monetary limits for filing appeals.
Judgment Excerpts
Pending the appeal for admission in view of specific provisions and circulars based upon policy decision to reduce the litigations from the side of department, applicant/appellant has taken out a civil application for disposal of appeal as withdrawn at admission stage.
Appellant/applicant has taken out this application for disposal of central excise appeal, in view of following averments so made in application.
Procedural History
The appellant filed Central Excise Appeal No. 06 of 2016 under Section 35G of the Central Excise Act, 1944. Pending admission, the appellant filed Civil Application No. 7737 of 2017 seeking withdrawal of the appeal. The Court heard the appeal and application finally by consent and disposed of the appeal as withdrawn.
Acts & Sections
- Central Excise Act, 1944: 35G
- CENVAT Credit Rules:
