Comnr.Cen.Excise vs. East INDIA Steels P.

Held

The Court noted that the tax effect in the instant appeal was less than Rs. 50 lakh, which fell below the monetary limit of Rs. 50,00,000/- for filing appeals before the High Court, as stipulated in the CBIC Circular dated July 11, 2018. In view of this Circular, which aimed at reducing government litigation by raising monetary limits for appeals, the Court disposed of the appeal. The reasoning was based on the directive issued by the CBIC to not file appeals below the specified monetary thresholds. The ratio decidendi is that appeals filed by the Department that do not meet the revised monetary limits prescribed by the CBIC Circulars are to be disposed of in accordance with the Circular's intent to reduce litigation. The Court granted liberty to the appellant (Department) to revive the appeal in case of difficulty, implying that if circumstances changed or if the Circular was interpreted differently in the future, the appeal could be re-examined.

Facts

The appeal was filed by the Department against an order dated March 28, 2006, passed by the CESTAT, Kolkata. The tax effect in dispute was stated to be less than Rs. 50 lakh. The Central Board of Indirect Taxes and Customs (CBIC) issued a Circular on July 11, 2018, in exercise of its 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 limits for filing appeals by the Department before the CESTAT, High Courts, and Supreme Court. The revised monetary limit for filing appeals before the High Court was Rs. 50,00,000/-.

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 July 11, 2018, issued by the CBIC? The Department, represented by learned Senior Standing Counsel, did not explicitly argue on the merits of the case. However, the appeal was before the High Court, and the tax effect was less than Rs. 50 lakh. The Department's primary concern would be the applicability and interpretation of the CBIC Circular. The Court was implicitly considering whether the Circular mandated the withdrawal or non-filing of appeals below the specified monetary threshold. The Revenue (Department) relied on the Circular dated July 11, 2018, which established a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court. The Circular also stated that it applied to pending cases and that withdrawal processes would follow existing practices.