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2022 (9) TMI 1472 - HC - Central ExciseConstitutional validity of Rule 8(3A) of the Central Excise Rules, 2002, pending consideration before the Hon’ble Supreme Court - HELD THAT:- The appeal was admitted for the purpose of scrutinising the effect of the order passed by the Hon’ble Supreme Court in UNION OF INDIA VERSUS INDSUR GLOBAL LTD. [2014 (11) TMI 1101 - SC ORDER], which had granted an order of stay and the decision of the High Court of Gujarat in the case of INDSUR GLOBAL LTD. VERSUS UNION OF INDIA & 2 [2014 (12) TMI 585 - GUJARAT HIGH COURT]. Identical matters came up before this Court on earlier occasion and the Court upon perusal of the material papers found the tax effect in these cases were less than the threshold limit fixed in the Circular issued by the Central Board for pursuing appeals before the High Court. Therefore, the appeals filed by the Revenue were disposed of by observing that the tax effect is less than the threshold limit. However, the legal issue as regards validity of the Rule 8(3A) of the Central Excise Rules, 2002, which was struck down by the Gujarat High Court in the case of Indsur Global Ltd. and which judgment has been stayed by the Hon’ble Supreme Court, had been left over - In the instant case from the order-in-original dated January 5, 2016, the demand of Central Excise duty was Rs. 1,57,553/-. If that be so, the Revenue cannot pursue this appeal on the ground of low tax effect subject of course with regard to the legal issue regarding the validity of Rule 8(3A) of 2002 Rules. The finding rendered by the Tribunal with regard to the validity of Rule 8(3A) of the Rule is set aside - the appeal filed by the Revenue has been disposed of on the ground of low tax effect and consequently no recovery can be effected from the respondent/assessee.
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