Comnr.Of Cen.Excise vs. Utkal Steels LTD
Held
The Court held that in view of the Circular dated July 11, 2018, issued by the Central Board of Indirect Taxes and Customs, which fixed the monetary limit for filing appeals before the High Court at Rs. 50,00,000/-, and considering that the tax effect in the present appeal was less than this amount, the appeal stood disposed of. The Court granted liberty to the Department to revive the appeal in case of any difficulty. The reasoning was based on the Department's own instruction to reduce litigation by raising monetary limits for appeals. The ratio decidendi is that appeals falling below the stipulated monetary threshold, as per departmental instructions, are to be disposed of accordingly, unless they involve substantial questions of law as defined in prior instructions.
Facts
The appeal was filed by the Department against an order dated March 29, 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 on July 11, 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 limits for filing appeals by the Department before various forums, including High Courts, to Rs. 50,00,000/-. The instruction applied to legacy issues relating to Central Excise and Service Tax and was applicable to pending cases.
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 July 11, 2018, particularly in light of the tax effect being less than Rs. 50 lac? The Department, through its learned Senior Standing Counsel, presented the appeal. The Court was informed of the CBIC Circular dated July 11, 2018, which established a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court in legacy Central Excise and Service Tax matters. The tax effect in the present appeal was stated to be less than this revised limit. The Department did not appear to argue the merits of the appeal, but rather relied on the procedural aspect of the circular.
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 29.03.2006 passed by CESTAT, Kolkata in Order No.A- 189/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.19 of 2006
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