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2015 (6) TMI 1026 - MADRAS HIGH COURT

2015 (6) TMI 1026 - MADRAS HIGH COURT - 2015 (329) E.L.T. 55 (Mad.) - Maintainability - Monetary limits - Recovery of Cenvat credit along with interest and imposition of penalty - Purchase of Sugar Confectionery namely Butter Scotch packaged in 30 gms. pouch in bulk and availed Cenvat credit on the said goods - Assessee put one 30 gms. pouch containing Butter Scotch inside the pack of Coffee Bite weighing 500 gms. manufactured by the assessee with the indication that the 30 gms - Appellant conte .....

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1 lakh. The reason for the litigation policy being put into operation coupled with the fact that the duty demand is only to the tune of ₹ 1 lakh approximately would not stand in the way of this Court to bring this appeal within the ambit of the above policy inspite of the appeal having been admitted on 8-9-2008. Therefore, even though this appeal is filed to consider the question of law, we are not inclined to entertain this appeal in view of the preliminary objection made by the the resp .....

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Therefore, in the light of circular issued by the Board dated 20-10-2010, the Court is not inclined to entertain this appeal. - Decided against the revenue - C.M.A. No. 2343 of 2008 - Dated:- 26-6-2015 - R. Sudhakar and K.B.K. Vasuki, JJ. Shri A.P. Srinivas, for the Appellant. Shri G.R.M. Palaniappan, for the Respondent. JUDGMENT Aggrieved by the order passed by the Tribunal in allowing the appeal filed by the assessee, the Revenue/appellant is before this Court by filing the present appeal. Thi .....

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amounts to manufacture? and 3. Whether the Tribunal is correct in allowing the credit of duty paid on the butterscotch inasmuch as butterscotch was not an input used in or in relation to the manufacture of the final product, i.e., coffee bite in view of the definition of input in terms of Rule 2(k) of CENVAT Credit Rules, 2004? 2. The 2nd respondent/assessee is a manufacturer of Sugar Confectionery without Cocco falling under chapter sub heading No. 1704.90 and Sugar Confectionery with .....

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Of Coffee Bite and paid the duty on the MRP of ₹ 62.50 declared to the pack containing Coffee Bite and Butter Scotch. The assessee was issued with a show cause notice proposing for recovery of the Cenvat credit of ₹ 1,03,167/- along with interest under Section 11AB of CEA, 1944 and imposition of penalty under Rule 15 of Cenvat Credit Rules, 2004. The said 30 gms. of butterscotch is not an input used in or in relation to the manufacture of final product viz. Coffee Bite. 3. Afte .....

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ndent/assessee preferred appeal to the Tribunal. The Tribunal, on considering the facts of the case, allowed the appeal filed by the assessee, against which the appellant/Department has preferred the present appeal. 6. Learned counsel appearing for the 2nd respondent/assessee raised a preliminary objection as to the maintainability of the case of the appellant contending that the appellant ought not to have filed the appeal in view of the litigation policy of the Government issued by the Mi .....

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uding fine or penalty is ₹ 2 Lakhs and below. While deciding the thresholds mentioned above the duty involved shall be the decisive element. For example, in a case involving duty of ₹ 1 Lakh with mandatory penalty of ₹ 1 Lakh besides any other penalty imposed under the relevant provisions of Law, no appeal shall henceforth be filed in the Tribunal as the duty involved is within the monetary limit of ₹ 1 Lakh. Similarly, if the duty involved in a case is ₹ 2 Lakhs wi .....

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he limit of ₹ 2 Lakhs, the present appeal, filed by the Department, is not maintainable. 8. Learned standing counsel appearing for the Department submitted that the appeal was admitted as early as on 8-9-2008 and the National Litigation Policy of the Government was issued by the Ministry of Finance, Department of Revenue, Central Board of Excise & Customs vide Instructions dated 20-10-2010 in F.No. 390/Misc./163/2010-JC and, therefore, there was no bar on the appellant/Department .....

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main reason for bringing into effect the National Litigation Policy is to reduce Government litigation so that the Government ceases to be a compulsive litigant. The purpose underlying this Policy is to ensure that valuable time of the Courts is spent in resolving pending cases and in bringing down the average pendency time in the Courts and to achieve this, the Government should become an efficient and responsible litigant. With the above object in mind, the National Litigation Policy was formu .....

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aspect in mind, this Court proceeds to analyse the present case on hand. 11. Even though the appeal has been admitted way back on 8-9-2008, a cursory look at the duty demand would reveal that the demand is approximately ₹ 1 lakh. The reason for the litigation policy being put into operation coupled with the fact that the duty demand is only to the tune of ₹ 1 lakh approximately would not stand in the way of this Court to bring this appeal within the ambit of the above policy in .....

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