Comnr,Cen.Excise vs. M/S.Nad Enterprises
Held
The Court held that in view of the CBIC Circular dated 11.07.2018, which stipulated a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court, and considering that the tax effect in the present appeal was less than Rs. 50 lac, the appeal stood disposed of. The Court granted liberty to the appellant to revive the appeal in case of difficulty. The reasoning was directly based on the application of the revised monetary limit set by the Board for departmental appeals. The ratio decidendi is that appeals falling below the prescribed monetary limits for departmental appeals, as per CBIC instructions, are to be disposed of accordingly, unless they involve substantial questions of law not covered by the monetary limits.
Facts
The appeal was filed by the Department against an order dated 03.01.2008 passed by the CESTAT, Kolkata, and First Appellate Orders dated 22.12.2006. The tax effect in dispute was stated to be less than Rs. 50 lac. A Circular dated 11.07.2018 was issued by the Central Board of Indirect Taxes & Customs (CBIC) in exercise of powers under Section 35R of the Central Excise Act, 1944, which also applied to Service Tax matters. This circular raised the monetary limit for filing appeals by the Department before the High Court to Rs. 50,00,000/-. The present appeal fell below this revised monetary limit.
Key Issues
1. Whether the appeal filed by the Department is maintainable before the High Court given the revised monetary limits for filing appeals stipulated in the CBIC Circular dated 11.07.2018, specifically concerning appeals before the High Court (Rs. 50,00,000/-)? Arguments for the Department: The Department relied on the CBIC Circular dated 11.07.2018, which established a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court. Since the tax effect in the present appeal was less than Rs. 50 lac, it fell within the scope of this circular, indicating that such appeals were not to be filed. Arguments for the Petitioner/Appellant: Not recorded in the judgment.
Sections Cited
Section 35R, Section 83
AI-generated summary — verify with the full judgment below
19.12.2018
Heard learned Senior Standing Counsel for the Department.
Instant appeal is directed against order dated 03.01.2008 passed by CESTAT, Kolkata in A-11- 12/KOL/2008 (Annexure-4) and First Appellate Orders both dated 22.12.2006 (Annexure-3 series) and indisputably the tax effect as brought to our notice, is less than Rs.50 lac.
A Circular dated 11.07.2018 has been issued by the Central Board of Indirect Taxes & Customs in exercise of its power under Section 35R of the Central Excise Act, 1944 which reads as under:-
“F. No.390/Misc.116/2017-JC
Ministry of Finance
Department of Revenue Central Board of Indirect Taxes & Customs
(Judicial Cell)
‘B’ Wing , 4th Floor, HUDCO-VISHALA Building Bhikaji Cama Place, R.K. Puram, New Delhi-66
Dated 11.07.2018 INSTRUCTION
To 1. All principal Chief Commissioners/Chief Commissioners/Principal Commissioners/Commissioners of Customs/Customs (Preventive) GST & CX;
All Principal Director Generals/Director Generals of Customs, GST & CX.
Chief Commissioner (AR); Commissioner Directorate
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