Commissioner, Central GST And Cx vs. Kirloskar Oil Engines LTD.

Held

The High Court did not entertain the Tax Appeal. The Court's decision was based solely on the ground that the tax amount in question, Rs. 21,83,814/-, is less than Rs. 50 lacs. This decision was made in consideration of a Circular/instruction dated 11/07/2018 received from the Central Board of Indirect Taxes & Customs. The Court explicitly stated that 'on the aforesaid ground alone, present Tax Appeal is not entertained.' No other issue or argument was discussed or decided. The ratio decidendi is that appeals involving tax amounts below a certain threshold, as stipulated by administrative instructions, may not be entertained by the High Court.

Facts

The Commissioner, Central GST and CX (appellant) filed a Tax Appeal before the High Court of Gujarat against Kirloskar Oil Engines Ltd. (respondent). The dispute pertains to CENVAT Tax Credit reversal, with the tax amount in question reported to be Rs. 21,83,814/-. The appeal was filed under the GST regime. The High Court considered a Circular/instruction dated 11/07/2018 issued by the Central Board of Indirect Taxes & Customs.

Key Issues

1. Whether the Tax Appeal is maintainable on the ground that the tax amount in dispute is less than Rs. 50 lacs, in light of the Circular/instruction dated 11/07/2018 issued by the Central Board of Indirect Taxes & Customs? The appellant, Commissioner, Central GST and CX, likely argued that the appeal should be entertained on its merits, without the circular being a bar. The respondent, Kirloskar Oil Engines Ltd., would have supported the dismissal of the appeal based on the circular, contending that the tax amount in dispute (Rs. 21,83,814/-) falls below the threshold specified in the circular for not entertaining appeals.