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2022 (3) TMI 103 - HC - Central ExciseMaintainability of appeal - Quantum of penalty - monetary amount involved in the appeal as per litigation policy - HELD THAT:- Admittedly, the quantum of penalty which was imposed by the original authority is far below the threshold limit fixed by the CBEC in their circular instruction. Therefore, the appellant cannot pursue this appeal. The revenue has preferred appeal before the Hon’ble Supreme Court and an order of stay has been granted. Therefore, it is submitted that the revenue should be permitted to pursue this appeal regardless of the fact that this is far below the monetary limit prescribed in the circular - such a course need not be adopted for more than one reasons: firstly, as pointed out that there is no dispute to the fact that the circular instruction issued by the CBEC would prevent the department from pursuing the appeal as the penalty imposed was ₹ 86,461/-. The subject-matter of challenge before the authority as well as the tribunal was only with regard to the imposition of penalty. It may be true that certain observations have been made by the first appellate authority as regards the validity of Rule 8(3)A and also quoted certain decisions of the various High Courts which have struck down the rule - if the legal issue with regard to the validity of Rule 8(3)A is left open, then the interest of the revenue will stand protected and at the same time if it is held that the appeal cannot be pursued by the revenue on account of the low tax effect, the interest of the assessee would also be safeguarded. The appeal filed by the revenue is dismissed on the ground that the amount of penalty imposed is lesser than the threshold limit fixed in the circular instruction by CBEC as part of the national litigation policy - Application dismissed.
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