Commnr.,Central Exc9 vs. Ocp Indiapltd.
Held
The Court held that the appeal was to be disposed of in view of the CBIC Circular dated 11.07.2018. This circular, issued under Section 35R of the Central Excise Act, 1944 (made applicable to Service Tax by Section 83 of the Finance Act, 1994), raised the monetary limit for filing appeals before the High Court to Rs. 50,00,000/-. As the tax effect in the present appeal was less than this revised limit, the Department was instructed not to file appeals below this threshold. The Court disposed of the appeal with a liberty to the Department to revive it in case of difficulty. The ratio decidendi is that the Department should adhere to the revised monetary limits for filing appeals as stipulated by the CBIC, unless substantial questions of law are involved or there are specific difficulties.
Facts
The appeal was filed by the Department against an order dated 07.06.2006 passed by the CESTAT, Kolkata. The tax effect in dispute was stated to be less than Rs. 50 lac. The Central Board of Indirect Taxes and Customs (CBIC) issued a Circular dated 11.07.2018, in exercise of powers under Section 35R of the Central Excise Act, 1944, which was made applicable to Service Tax vide Section 83 of the Finance Act, 1994. This circular raised the monetary limit for filing appeals by the Department before High Courts to Rs. 50,00,000/-. The instruction applied to legacy issues and pending cases. The High Court took note of this circular.
Key Issues
1. Whether the appeal filed by the Department is maintainable before the High Court given the monetary limit stipulated in the CBIC Circular dated 11.07.2018? (Question of law, turning on Section 35R of the Central Excise Act, 1944 and Section 83 of the Finance Act, 1994). Contentions: Petitioner (Department): The Department relied on the CBIC Circular dated 11.07.2018, which stipulated 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, the appeal was to be considered in light of this instruction. Revenue (CESTAT): No specific arguments were recorded for the Revenue in the judgment.
Sections Cited
Section 35R, Section 83
AI-generated summary — verify with the full judgment below
12.12.2018
Heard learned Senior Standing Counsel for the Department.
Instant appeal is directed against order dated 07.06.2006 passed by CESTAT, Kolkata in Order No.A- 466/KOL/2006 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 of Legal Affairs, CBIC; 4. <webmaster.cbec@cegale.gov.in> OTAPL No.22 of 2006
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