Commissioner , CGST And Central Excise, Allahabad vs. M/S Iti Doorbhash Nagar, Up
Held
The Court held that the appeal was not maintainable. The reasoning was based on the Circular of the Ministry of Finance dated 11.07.2018, which clearly states that appeals with a tax effect below Rs. 50,00,000/- should not be filed or pursued. Since the tax effect in the present appeal was Rs. 41,66,634/-, which is less than the prescribed monetary limit, the appellant was not entitled to file the appeal. The Circular was the primary basis for the decision. The Court found the appeal to be defective on account of delay and also below the monetary limit. Therefore, the appeal was dismissed on these grounds.
Facts
The Commissioner, CGST and Central Excise, Allahabad (appellant) filed a defective appeal before the High Court against M/s Iti Doorbhash Nagar, UP (respondent). The appeal was defective due to delay and also fell below the monetary limit prescribed for filing appeals in the High Court. The tax effect involved in the appeal was Rs. 41,66,634/-. The appellant's counsel was heard. The Court noted a Circular of the Ministry of Finance dated 11.07.2018, as modified, which stipulated that appeals with a tax effect below Rs. 50,00,000/- should not be filed or pursued.
Key Issues
1. Whether the appeal is maintainable before the High Court given that the tax effect is below the prescribed monetary limit for filing appeals? The appellant argued that the appeal was filed by the Commissioner, CGST and Central Excise, Allahabad. The respondent's counsel was not recorded as making specific arguments. The Court's decision was based on the Circular of the Ministry of Finance dated 11.07.2018, which sets a monetary limit for filing appeals. The appellant's counsel was heard, but the judgment does not record any specific counter-arguments against the application of the Circular.
AI-generated summary — verify with the full judgment below
Court No. - 29 Case :- CENTRAL EXCISE APPEAL DEFECTIVE No. - 31 of 2018 Appellant :- Commissioner , Cgst And Central Excise, Allahabad Respondent :- M/S Iti Doorbhash Nagar, Up Counsel for Appellant :- Ramesh Chandra Shukla Counsel for Respondent :- Stuti Saggi Hon'ble Pankaj Mithal,J. Hon'ble Pankaj Bhatia,J. Heard Sri Ramesh Chandra Shukla, learned counsel for the appellant.
The appeal is defective on account of delay but it is also below the monetary limit prescribed for filing the appeal in the High Court. The tax effect involved in this appeal is to the tune of Rs. 41,66,634/-. The Circular of Ministry of Finance dated 11.7.2018 as modified by F.N.390/Misc/116/2017-JC, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs (Judicial Cell), provides that where the tax effect involved as below Rs. 50,00,000/- (fifty lakh), no appeal should be filed and perused. In view of above Circular of Ministry of Finance since tax effect involved in this appeal is less than the monetary limit provided therein, the appellant is not entitle to file this appeal. It is, accordingly, dismissed. Order Date :- 7.12.2018 Mohit Kushwaha
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Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.