The Principal Commissioner Of Central Tax vs. M/S. Oil Country Tubular PVT LTD

Facts

The Principal Commissioner of Central Tax, GST Bhavan, Hyderabad (appellant) filed an appeal under Section 35-G of the Central Excise Act, 1944, against an order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The CESTAT's order was passed in an appeal preferred against an order of the Commissioner of Customs & Central Excise & Service Tax (Appeals-I&III). The respondent is M/s. Oil Country Tubular Pvt Ltd. The appeal was filed after the CESTAT had passed its order. The appellant's counsel appeared, and the respondent's counsel appeared. The Court noted that the tax effect in the instant appeal was well below the monetary limit for filing appeals by the Department.

Held

The Court held that the appeal filed by the appellant is dismissed in terms of the CBIC circular bearing No. CBIC-160390/20/2024-JC_CBEC, dated 06.08.2024. This circular enhances the monetary limits for filing appeals by the Department before various appellate authorities, including the High Courts, as a measure to reduce litigation. The Court found that the tax effect in the instant appeal was well below the stipulated monetary limit of Rs. 2.00 crore for appeals before the High Court. The reasoning is based on the explicit directive of the circular, which aims to streamline litigation by setting financial thresholds for departmental appeals. The ratio decidendi is that appeals falling below the prescribed monetary limits are not to be entertained by the High Court, unless they fall within specific exceptions mentioned in the circular. The Court also noted that if the appeal comes within the exceptions of the said circular, it would be open to the appellant to seek revival of the appeal. No costs were awarded.

Key Issues

1. Whether the appeal filed by the appellant is maintainable in light of the monetary limit for filing appeals as stipulated by the Central Board of Indirect Taxes and Customs (CBIC) circular dated 06.08.2024? The appellant argued that the appeal was filed before the High Court. The revenue (appellant) contended that the tax effect in the instant appeal was well below the monetary limit of Rs. 2.00 crore fixed for filing appeals before the High Court by the CBIC vide Circular No. CBIC-160390/20/2024-JC_CBEC dated 06.08.2024. The respondent did not record any specific arguments in the judgment.