Comnr,Central Excise vs. Aryan Ispat Andpower
Held
The Court noted that the tax effect in the appeal was less than Rs. 50 lac, which is the revised monetary limit for filing appeals before the High Court as per the CBIC Circular dated 11.07.2018. The Court observed that the 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. In view of this Circular and the tax effect being below the stipulated limit, the appeal was disposed of. The Court granted liberty to the Revenue 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 revised monetary limits prescribed by the CBIC, for which instructions have been issued to reduce government litigation, are to be disposed of accordingly, with liberty to revive if necessary.
Facts
The appeal was filed by the Revenue against an order dated 14.09.2007 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 & 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 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, including pending cases.
Key Issues
1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limit stipulated in the CBIC Circular dated 11.07.2018? The Revenue argued that the appeal was filed prior to the issuance of the Circular and that the tax effect was less than Rs. 50 lac, which is the revised monetary limit for High Court appeals. The Revenue contended that the Circular effectively mandates that appeals with a tax effect below Rs. 50 lac should not be filed. The judgment does not record any specific arguments from the Revenue regarding the maintainability of the appeal itself, other than its existence.
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 14.09.2007 passed by CESTAT, Kolkata in Order No.S- 735/A-1767/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
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