Comnr,Central Excise vs. Birla Tyres
Held
The Court held that in view of the CBIC Circular dated 11.07.2018, which sets a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court, and the fact that the tax effect in the present appeal is less than Rs. 50 lac, the appeal stands disposed of. The Court granted liberty to the Department to revive the appeal in case of any difficulty. The reasoning is based on the directive issued by the CBIC to reduce government litigation by raising monetary limits for filing appeals. The ratio decidendi is that appeals falling below the prescribed monetary threshold, as per the relevant circular, are not to be pursued by the Department before the High Court.
Facts
The appeal was filed by the Department against an order dated 24.06.2008 passed by the CESTAT (Eastern Zone Bench), 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 its power 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 the High Court to Rs. 50,00,000/-. The instruction applied to legacy issues and pending cases.
Key Issues
1. Whether the present appeal, with a tax effect of less than Rs. 50 lac, is maintainable before the High Court in light of the CBIC Circular dated 11.07.2018 which sets a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court. The Department argued that the Circular dated 11.07.2018, issued under Section 35R of the Central Excise Act, 1944 (made applicable to Service Tax by Section 83 of the Finance Act, 1994), mandates that appeals shall not be filed if the monetary limit of Rs. 50,00,000/- is not met. The Department acknowledged that the tax effect in this case is less than Rs. 50 lac. The judgment does not record any specific arguments from the petitioner.
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 24.06.2008 passed by CESTAT(EZB), Kolkata in Order No.S-551-553/A-690-692/Kol/2008 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.2
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