Comnr,Central Excise vs. Anurag Ferro Product
Held
The Court held that the appeal was disposed of in view of the Circular dated 11.07.2018 issued by the CBIC, which raised the monetary limit for filing appeals before the High Court to Rs. 50,00,000/-. Since the tax effect in the present appeal was less than Rs. 50 lac, the appeal was not maintainable under the revised guidelines. 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 was based on the explicit instruction in the Circular regarding the monetary limits for filing appeals, which applied to pending cases. The ratio decidendi is that appeals falling below the revised monetary threshold stipulated by the CBIC are to be disposed of in accordance with the Circular, unless substantial questions of law are involved.
Facts
The appeal was filed by the Department against an order dated 09.09.2008 passed by the CESTAT, Kolkata. The tax effect in dispute was 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 power under Section 35R of the Central Excise Act, 1944, which raised the monetary limit for filing appeals by the Department before the High Courts to Rs. 50,00,000/-. This instruction applied to legacy issues relating to Central Excise and Service Tax and was applicable to pending cases. The appeal was heard on 09.01.2019.
Key Issues
1. Whether the appeal filed by the Department is maintainable before the High Court given the revised monetary limit stipulated in the CBIC Circular dated 11.07.2018? Petitioner (Department) argument: The Department contended that the appeal was filed prior to the issuance of the Circular and that the tax effect was below the revised monetary limit for High Court appeals. They relied on the Circular which specified a monetary limit of Rs. 50,00,000/- for appeals before the High Court and stated it applied to pending cases. Revenue/State argument: The judgment does not record any specific argument from the Revenue/State side. However, the outcome suggests the Court considered the implications of 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 09.09.2008 passed by CESTAT, Kolkata in Order No.M-227-228/S-692-693/A-875-876/KOL/2008 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. <webmas
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