Commissioner CGST Delhi South vs. M/S Nitin Industries (Trade Name)

CEAC/9/2023HC DelhiGSTCNR DLHC01026750202313 February 2024Bench: HON'BLE MR. JUSTICE SANJEEV SACHDEVA,HON'BLE MR. JUSTICE RAVINDER DUDEJA3 pages

AI SummaryDismissed

Facts

The Commissioner CGST Delhi South (Petitioner) has appealed an order dated 24.11.2022 passed by the Custom Excise and Central Tax Tribunal. The Tribunal had allowed an appeal filed by M/s Nitin Industries (Respondent) and permitted a refund of Rs.30,48,272.47 under Section 142(3) read with Section 54 and Section 49(6) of the Central Goods and Service Tax Act, 2017. The Respondent raised an objection regarding the low tax effect of the appeal, contending it was below the permissible limit of Rs.1,00,00,000/- for filing an appeal, as per instructions from the Central Board of Indirect Taxes & Customs dated 22.08.2019 and 17.08.2011.

Held

The Court held that the appeal was barred due to the low tax effect. It noted that the Tribunal's order was based on the specific facts of the case, allowing the refund under Section 142(3) read with Section 54 and Section 49(6) of the Act. The Court found that neither the constitutional validity of any provision of an Act or rule was under challenge, nor had any notification, instruction, order, or circular been held to be illegal or ultra vires. Therefore, the exception provided in Para 1.3 of the instruction dated 17.08.2011 was not applicable. The Court explicitly stated that the question of law proposed by the appellant was left open. The appeal was dismissed on the ground of low tax effect.

Key Issues

1. Whether the appeal filed by the Petitioner is maintainable despite the low tax effect of Rs.30,48,272.47, considering the instructions issued by the Central Board of Indirect Taxes & Customs regarding monetary limits for filing appeals? The Petitioner argued that the appeal was maintainable because the Tribunal erred in not applying the second proviso to Section 142(3) of the Central Goods and Service Tax Act, 2017. They relied on Para 1.3 of the instruction dated 17.08.2011, which permits contesting adverse judgments irrespective of the amount involved if the constitutional validity of an Act or Rule is challenged, or if a notification, instruction, order, or circular is held illegal or ultra vires. The Respondent contended that the tax effect of the refund allowed (Rs.30,48,272.47) was below the permissible limit of Rs.1,00,00,000/- for filing an appeal, as per the instructions dated 22.08.2019 and 17.08.2011.

Sections Cited

Section 142(3), Section 54, Section 49(6)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

CEAC 9/2023 Page 1 of 3 $~2 * IN THE HIGH COURT OF DELHI AT NEW DELHI Judgment delivered on: 13.02.2024 + CEAC 9/2023 & CM APPL. 35686/2023 COMMISSIONER CGST DELHI SOUTH ..... Petitioner versus M/S NITIN INDUSTRIES (TRADE NAME) ..... Respondent Advocates who appeared in this case: For the Petitioner: Mr. Akshay Amritanshu, Sr. Standing Counsel, Ms. Anjali Kumari, Mr. Samyak Jain, Mr. Ayush Raj, Advocates. For the Respondent: Mr. N.K. Sharma, Mr. Kapil Gautam, Advocates. CORAM:- HON’BLE MR. JUSTICE SANJEEV SACHDEVA HON'BLE MR. JUSTICE RAVINDER DUDEJA

JUDGMENT

SANJEEV SACHDEVA, J. (ORAL)

Appellant impugns order dated 24.11.2022 whereby the Custom Excise and Central Tax Tribunal has allowed the appeal filed by the respondent and permitted refund in terms of Section 142(3) read with Section 54 and Section 49(6) of the Central Goods and Service Tax Act, 2017. CEAC 9/2023

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