Comnr,Central Excise vs. Idl Industries LTD.
Held
The Court noted that the appeal was directed against orders of the CESTAT, and the tax effect was less than Rs. 50 lac. The Court referred to the Circular dated July 11, 2018, issued by the CBIC, which stipulated a monetary limit of Rs. 50,00,000/- for filing appeals by the Department before the High Courts. In view of this circular, the Court held that the appeal, having a tax effect below the prescribed monetary limit, should be disposed of. 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 administrative instruction to reduce government litigation by raising monetary limits for appeals.
Facts
The appeal was filed by the Department against two orders passed by the CESTAT, Kolkata, dated March 26, 2007, and December 13, 2007. 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 its powers under Section 35R of the Central Excise Act, 1944, which 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 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 monetary limit stipulated in the CBIC Circular dated July 11, 2018, for filing appeals before High Courts. The Department argued that the appeal was filed against orders of the CESTAT, and the tax effect was less than Rs. 50 lac. The Department relied on the CBIC Circular dated July 11, 2018, which set a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court. The Department contended that since the tax effect was below this limit, the appeal should not have been filed or should be withdrawn. The judgment does not record any specific arguments from the revenue or State side, but the context implies the appeal was being considered for disposal based 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 orders dated 26.03.2007 and 13.12.2007 passed by CESTAT, Kolkata in Order No.A-474/KOL/2007 and Order No.M-423/KOL/ 2007 respectively 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
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