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2022 (2) TMI 1071 - HC - Central ExciseMaintainability of appeal - quantum of penalty involved in the appeal - Validity of Rule 8(3)A of the Central Excise Rules - 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. Learned standing counsel for the appellant submitted that the Commissioner of Appeals has rendered certain findings touching upon the validity of Rule 8(3)A of the Central Excise Rules and referred to certain decisions of other Courts which struck down the rule as being ultra vires and also referred to one of the decisions 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] - 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 ₹ 6,33,022/-. 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 we hold 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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