Commissioner Of Central G S T And Central Excise vs. M/S Singh And Sons Industries

Held

The Court held that the appeal is not maintainable in terms of the CBIC circular dated 06.08.2024. The Court found no merit in the appellant's contention that the appeal must be contested due to a challenge to the constitutional validity of the Act's provisions. The Court referred to the Gujarat High Court's decision in 'Indsur Global Ltd. Vs. Union of India & Others', which declared a condition in sub-rule (3A) of Rule 8 of the Central Excise Rules, 2002, unconstitutional. The Court noted that the Union of India's appeal against this judgment was withdrawn as not pressed, based on a similar circular. The Court reasoned that since the circulars are pari materia and only the threshold limit has changed, the respondent cannot be compelled to contest the appeal on the grounds of constitutional validity when the Union of India itself withdrew a similar appeal. The issue in the instant appeal was identical to the one decided by the Gujarat High Court. Therefore, the appeal was dismissed.

Facts

This is a Tax Appeal filed by the Commissioner of Central GST & Central Excise, Jamshedpur, against M/s. Singh & Sons Industries. The appeal concerns a matter where the tax effect falls below the threshold stipulated in a circular dated 06.08.2024 issued by the Central Board of Indirect Taxes and Customs (CBIC). The appellant contended that the appeal must be contested due to a challenge to the constitutional validity of certain provisions of the Act. However, the Court noted a Gujarat High Court judgment in 'Indsur Global Ltd. Vs. Union of India & Others' (2014 SCC OnLine Guj 14129) which had struck down a condition in sub-rule (3A) of Rule 8 of the Central Excise Rules, 2002 as unconstitutional. The Union of India had appealed this decision to the Supreme Court, but it was disposed of as not pressed due to the tax effect falling below a previous circular's threshold.

Key Issues

1. Whether the present appeal is maintainable in light of the tax effect falling below the threshold stipulated in the CBIC circular dated 06.08.2024, despite the appellant's contention that the constitutional validity of the Act's provisions is under challenge? Petitioner's Argument: The appellant (Commissioner of Central GST & Central Excise) argued that the appeal must be contested irrespective of the amount involved because the constitutional validity of the provisions of the Act is under challenge. They relied on paragraph 3 of the CBIC circular dated 06.08.2024. Revenue/State's Argument: The respondent (M/s. Singh & Sons Industries) did not explicitly record arguments in the judgment. However, the Court's reasoning implies that the respondent would likely rely on the principle that appeals below the threshold are to be withdrawn, and that the issue has already been decided by the Gujarat High Court.