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In exercise of powers under Article 227 of the Constitution, the HC dismissed the Department's appeal before CESTAT, finding the dispute clearly covered by the circular dated November 2, 2013, as the amount involved (Rs. 29,66,805 plus Rs. 20 lakhs) was below the Rs. 50 lakhs monetary limit. The Court determined that disregarding the Instruction would serve no useful purpose and would unnecessarily prolong the retention of the Petitioner's bank guarantee, which had been held for over 14 years. The HC ordered the release of the bank guarantee within 8 weeks, acknowledging that while the appeal predated the Instruction, the monetary limits would apply to pending matters.
In exercise of powers under Article 227 of the Constitution, the HC dismissed the Department's appeal before CESTAT, finding the dispute clearly covered by the circular dated November 2, 2013, as the amount involved (Rs. 29,66,805 plus Rs. 20 lakhs) was below the Rs. 50 lakhs monetary limit. The Court determined that disregarding the Instruction would serve no useful purpose and would unnecessarily prolong the retention of the Petitioner's bank guarantee, which had been held for over 14 years. The HC ordered the release of the bank guarantee within 8 weeks, acknowledging that while the appeal predated the Instruction, the monetary limits would apply to pending matters.
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