Comnr,Central Excise vs. M/S.Shristi Ispat Lt
Held
The Court noted the Circular dated 11.07.2018 issued by the CBIC, which stipulated that appeals shall not be filed before the High Court if the monetary limit is below Rs. 50,00,000/-. The Court observed that the tax effect in the present appeal was indisputably less than Rs. 50 lac. In view of this Circular and the tax effect, the Court disposed of the appeal. The Court granted liberty to the Department to revive the appeal within thirty days from the date of the order in case of any difficulty. The ratio decidendi is that appeals falling below the prescribed monetary limits in the CBIC's instructions regarding reduction of government litigation are to be disposed of accordingly, unless substantial questions of law are involved.
Facts
The appeal was filed by the Department against an order dated 05.01.2009 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 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 before various forums, including High Courts, below which appeals were not to be filed. The revised monetary limit for filing appeals before the High Court was set at Rs. 50,00,000/-.
Key Issues
1. Whether the appeal filed by the Department is maintainable before the High Court in light of the monetary limit prescribed by the CBIC Circular dated 11.07.2018, specifically concerning Section 35R of the Central Excise Act, 1944, as made applicable to Service Tax vide Section 83 of the Finance Act, 1994? The Department argued that the appeal was filed against an order of the CESTAT, and the tax effect was less than Rs. 50 lac, which fell below the revised monetary limit for High Court appeals set by the CBIC Circular. The Department relied on the said Circular dated 11.07.2018. The judgment does not record any specific arguments from the Revenue or State in opposition to the Department's reliance on 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 05.01.2009 passed by CESTAT, Kolkata in Order No.A- 13/KOL/2009 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: Reduct
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Orissa High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.