Commissioner Of Central Goodsandser Tax vs. Sarthak Contracts
Held
The Court held that the application for Special Leave to Appeal was not maintainable. This decision was directly based on the circular dated July 11, 2018, issued by the Central Board of Indirect Taxes and Customs (CBIC). The circular revised the monetary limits for filing appeals by the Department before High Courts to ₹50,00,000/-. Since the application for leave to appeal was considered in view of this circular and the specific monetary limits prescribed therein, the Court found that the application could not be sustained. The reasoning is that the Department itself, through its policy, had set a threshold below which it would not pursue appeals. The Court did not delve into the merits of the underlying GST dispute, if any, as the procedural aspect of the appeal's maintainability was paramount. The ratio decidendi is that departmental policies regarding monetary limits for litigation are binding on the department and can lead to the dismissal of appeals that fall below these limits. The operative direction was to dismiss the application.
Facts
This matter concerns an application for Special Leave to Appeal filed by the Commissioner of Central Goods and Service Tax, Jaipur, against Sarthak Contracts. The application was filed before the High Court of Judicature for Rajasthan, Bench at Jaipur. The core of the decision rests on a circular issued by the Central Board of Indirect Taxes and Customs (CBIC) dated July 11, 2018. This circular revised the monetary limits for filing appeals by the Department before various appellate forums, including High Courts. The circular stipulated that appeals would not be filed before High Courts if the monetary limit was below ₹50,00,000/-. The petitioner's application for leave to appeal was considered in light of this revised policy.
Key Issues
1. Whether the application for Special Leave to Appeal is maintainable in light of the revised monetary limits for filing appeals by the Department, as stipulated in the CBIC circular dated July 11, 2018? Petitioner's Arguments: The petitioner, the Commissioner of Central Goods and Service Tax, Jaipur, did not present any arguments in opposition to the application being dismissed. The Court's decision was based on the circular issued by the CBIC. Respondent's Arguments: The respondent, Sarthak Contracts, did not present any arguments. The Court's decision was based on the circular issued by the CBIC.
Sections Cited
Section 35R, Section 83
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Order 26/07/2018 In view of the monitory limit and the circular issued by CBDT dated 11th July, 2018, 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 11.7.2018 INSTRUCTION To 1. All Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/Commissioners of Customs/ Customs (Preventive)/ GST & CX; 2.All Principal Director Generals/ Director Generals of Cus
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