Excise duty and Cenvat credit dispute: departmental appeal dismissed for no substantial question of law.

The revenue's section 35G appeal in an excise duty and Cenvat credit dispute was rejected because the Original Authority, the appellate authority and the Tribunal had all decided against the department. The Tribunal relied on an earlier decision on the main issue in favour of the assessee and found no basis to entertain the departmental challenge. The High Court found no substantial question of law and dismissed the appeal on merits, while also criticising avoidable litigation over a small amount.

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Issues: Whether the revenue's appeal under section 35G of the Central Excise Act, 1944 deserved interference after the authorities below had held against the department on the excise duty and Cenvat credit dispute.

Analysis: The Original Authority, the appellate authority and the Tribunal had all decided the matter against the revenue. The Tribunal also noted that the earlier decision on the main issue was in favour of the assessee and that no basis existed to entertain the departmental appeal. The High Court found no substance in the proposed question of law and deprecated the filing of avoidable litigation involving a small amount.

Conclusion: The appeal was not maintainable on merits and was dismissed.

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