Comnr.Central Excise vs. Ocp INDIA P.LTD
Held
The Court held that in view of the Circular dated 11.07.2018 issued by the Central Board of Indirect Taxes & Customs, which raised the monetary limit for filing appeals by the Department before the High Court to Rs. 50,00,000/-, and considering that the tax effect in the present appeal was less than Rs. 50 lac, the appeal stood disposed of. The Court granted liberty to the Department to revive the appeal in case of difficulty. The reasoning was based on the Department's own policy to reduce litigation by setting higher monetary thresholds for appeals. The ratio decidendi is that appeals falling below the revised monetary limits set by the CBIC for government litigation reduction should not be pursued, unless substantial questions of law are involved, which was not indicated as a factor in this disposal.
Facts
The appeal was filed by the Department against an order dated 02.03.2007 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 & Customs (CBIC) had issued a Circular dated 11.07.2018, in exercise of powers under Section 35R of the Central Excise Act, 1944, which raised the monetary limit for filing appeals by the Department before High Courts to Rs. 50,00,000/-. This instruction applied to legacy issues relating to Central Excise and Service Tax and was applicable to pending cases. The appeal in question fell below this revised monetary limit.
Key Issues
1. Whether the appeal filed by the Department is maintainable before the High Court given the revised monetary limit for filing appeals stipulated in the CBIC Circular dated 11.07.2018, specifically in light of 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 not to be filed. The Department also referred to the instruction to reduce government litigation. Revenue (CESTAT): The judgment does not record any specific arguments made by the Revenue or the CESTAT in response to the Department's submission regarding the circular.
Sections Cited
Section 35R, Section 83
AI-generated summary — verify with the full judgment below
09.01.2019
Heard learned Senior Standing Counsel for the Department.
Instant appeal is directed against order dated 02.03.2007 passed by CESTAT, Kolkata in Order No.S-248- 249/A-240-241/KOL/2007 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> Subject: Redu
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