Comnr.Of Central Exc vs. Sail
Held
The Court held that in view of the CBIC Circular dated July 11, 2018, which sets a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court, and considering that the tax effect in the present appeal was less than Rs. 50 lac, 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 reasoning is based on the Department's own instruction to reduce litigation by setting monetary thresholds for appeals. The ratio decidendi is that appeals falling below the stipulated monetary limits, as per departmental instructions, are to be withdrawn or not filed, unless substantial questions of law are involved, which was not explicitly raised or considered here.
Facts
The appeal was filed by the Department against an order dated July 11, 2007, passed by the CESTAT, Kolkata. The tax effect in dispute was stated to be less than Rs. 50 lac. A Circular dated July 11, 2018, issued by the Central Board of Indirect Taxes & Customs (CBIC) in exercise of powers under Section 35R of the Central Excise Act, 1944, raised the monetary limit for filing appeals by the Department before High Courts to Rs. 50,00,000/-. This instruction applied to legacy issues related to Central Excise and Service Tax and was applicable to pending cases. The appeal was heard on January 9, 2019.
Key Issues
1. Whether the appeal filed by the Department is maintainable before the High Court, given the revised monetary limits for filing appeals stipulated in the CBIC Circular dated July 11, 2018, and the tax effect of the dispute. The Department argued that the appeal was directed against an order of the CESTAT, and the tax effect was below the revised monetary limit of Rs. 50,00,000/- for High Court appeals as per the CBIC Circular dated July 11, 2018. The Department relied on this circular to contend that such appeals should not be filed or pursued. The judgment does not record any specific arguments from the revenue or State in opposition to this contention.
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 11.07.2007 passed by CESTAT, Kolkata in Order No.A- 1294/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: Reduction of Gove
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