Comnr,Central Excise vs. M/S.B.K.Thakkar
Held
The Court held that the appeal stands disposed of in view of the Circular dated 11.07.2018 issued by the CBIC, which sets 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 was advised not to pursue it. The Court granted the Department liberty to revive the appeal within thirty days from the date of the order in case of any difficulty. The reasoning is based on the explicit instruction in the Circular to reduce litigation by raising monetary thresholds, implying that appeals below these thresholds should not be filed or pursued.
Facts
The appeal was filed by the Department against an order dated 01.10.2007 passed by 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 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 fixed monetary limits for filing appeals by the Department. For High Courts, the monetary limit below which an appeal shall not be filed was set at Rs. 50,00,000/-. The instruction applied to legacy issues relating to Central Excise and Service Tax, and also to pending cases.
Key Issues
1. Whether the appeal filed by the Department is maintainable before the High Court given the monetary limit stipulated in the CBIC Circular dated 11.07.2018? The Department argued that the appeal was filed before the Circular was issued, and the tax effect was below the revised limit for High Courts. The Revenue contended that the Circular sets a new threshold for filing appeals and applies to pending cases, thus rendering the current appeal non-maintainable. The Court had to decide if the Circular, which aims to reduce government litigation by raising monetary limits for appeals, should be applied to the present appeal. The core of the issue revolves around the interpretation and applicability of the CBIC Circular to pending appeals.
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 01.10.2007 passed by CESTAT, Kolkata in Order No.A- 1806/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@icegate.gov.in> Subject: Redu
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