Comnr,Central Excise vs. Shyam Dri Power LTD.
Held
The Court held that the appeal, having a tax effect of less than Rs. 50 lac, falls below the monetary limit of Rs. 50,00,000/- prescribed for filing appeals before the High Court by the Department, as per the Circular dated 11.07.2018 issued by the CBIC. The Court noted that this circular was issued in exercise of powers under Section 35R of the Central Excise Act, 1944, made applicable to Service Tax vide Section 83 of the Finance Act, 1994. Consequently, the appeal was disposed of. 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 filed by the Department before the High Court concerning legacy Central Excise and Service Tax matters, with a tax effect below the stipulated monetary limit, are to be disposed of in accordance with the CBIC's instructions on reducing government litigation.
Facts
The appeal was filed by the Department against an order dated 01.10.2007 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 and Customs (CBIC) issued a Circular dated 11.07.2018, in exercise of its 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 revised monetary limits for filing appeals by the Department before various forums, including High Courts, setting the limit at Rs. 50,00,000/-. The instruction was applicable to legacy issues relating to Central Excise and Service Tax, and to pending cases.
Key Issues
1. Whether the appeal, with a tax effect of less than Rs. 50 lac, is maintainable before the High Court in light 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 High Courts in legacy matters. Contentions of the Department: The Department relied on the Circular dated 11.07.2018, which stipulated that appeals shall not be filed before the High Court if the monetary limit is below Rs. 50,00,000/-. Since the tax effect in this case was less than Rs. 50 lac, the Department argued that the appeal should be disposed of in accordance with this circular. Contentions of the Petitioner/Appellant: Not recorded in the judgment.
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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