Comnr.Central Excise vs. Sukinda Chromite

Held

The Court held that the appeal filed by the Department was to be disposed of in view of the Circular dated 11.07.2018 issued by the CBIC. This circular, issued under Section 35R of the Central Excise Act, 1944 (made applicable to Service Tax vide 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 stated to be less than Rs. 50 lac, the appeal fell below the revised monetary threshold. The Court granted liberty to the Department to revive the appeal in case of any difficulty. The operative direction was the disposal of the appeal with liberty to revive.

Facts

The appeal was filed by the Department against an order dated 09.06.2006 passed by the CESTAT, Kolkata. The tax effect in dispute was less than Rs. 50 lac. The Central Board of Indirect Taxes & 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. In view of this circular, the appeal was disposed of.

Key Issues

1. Whether the appeal filed by the Department is maintainable before the High Court given the monetary limit stipulated in the Circular dated 11.07.2018 issued by the CBIC? (Question of law) Arguments for the Department: The Department relied on the 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 Department contended that the appeal should be disposed of in accordance with this circular. Arguments for the Petitioner/Appellant: Not recorded in the judgment.