Commissioner, Central GST And Central Excise, Vadodara- Ii vs. M/S General Motors INDIA PVT. LTD
Held
The Court held that both tax appeals were not pressed by the appellant. This decision was based on the instructions dated 22nd August 2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs. These instructions stipulated monetary limits for filing appeals, setting Rs. 1,00,00,000/- as the threshold below which appeals should not be filed before High Courts. The Court found that the tax effect in these appeals was below this prescribed limit. Consequently, the appeals were disposed of in accordance with these instructions. The ratio decidendi is that appeals with a tax effect below the stipulated monetary limits, as per government instructions, should not be pursued.
Facts
These two tax appeals were filed by the Commissioner, Central GST and Central Excise, Vadodara - II, against M/s. General Motors India Pvt. Ltd. The appeals were before the High Court of Gujarat. The appeals were not pressed by the appellant due to a low tax effect. This decision was made in light of instructions dated 22nd August 2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs (Judicial Cell). These instructions set monetary limits below which appeals should not be filed in various appellate forums, including High Courts.
Key Issues
1. Whether the appeals should be dismissed on the grounds of low tax effect, as per the instructions issued by the Central Board of Indirect Taxes and Customs dated 22nd August 2019, which set a monetary limit of Rs. 1,00,00,000/- for appeals before High Courts. Contentions: Petitioner (Appellant): The petitioner argued that the appeals were not pressed in view of the low tax effect, citing the instructions dated 22nd August 2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs (Judicial Cell). These instructions fixed monetary limits for filing appeals, with Rs. 1,00,00,000/- being the limit for High Courts. Revenue (Respondent): No arguments were recorded for the respondent.
Sections Cited
Section 35R, Section 83
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Cause title — parties, addresses and appearances
COMMON ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA)
Both the tax appeals are not pressed in view of the low tax effect having regard to the Instructions dated 22nd August 2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs (Judicial Cell), wherein the following has been stated. In exercise of the powers conferred by Section 35R of the Central Excise Act, 1944 and made applicable to Service Tax vide Section 83 of the Finance Act,
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