2014 (11) TMI 978 - HC - Central Excise

Maintainability of appeal - Section 35G - Held that - Under Section 35G of the Act appeal before the High Court is maintainable against the order passed by the Customs Excise and Service Tax Appellate Tribunal only when it does not relate to determination of any question having a relation to the rate of duty of Excise or to the value of goods for the purpose of assessment. Appeals on the said two issues are maintainable before the Supreme Court under Section 35L of the Act. - present appeals are not maintainable before the High Court and are accordingly directed to be returned - Decided against Revenue.

Summary

Issues:
Appeal maintainability under Section 35G of the Central Excise Act, 1944 regarding chargeability or levy of Excise duty based on manufacturing activity.

Analysis:
The appeals under Section 35G of the Central Excise Act, 1944 were filed by the Revenue, challenging the Order-In-Original and appellate proceedings related to the chargeability or levy of Excise duty. The issue at hand was whether the respondents, engaged in cutting/slitting of jumbo paper rolls, were liable to pay Excise duty. The Tribunal accepted the contention that this activity did not amount to manufacture, but the Adjudicating Authority rejected the same.

The main question raised in the appeals was whether the process of cutting/slitting jumbo paper rolls into smaller sizes, along with additional activities like punching, printing, and inserting carbon paper, amounted to manufacturing under Section 2(f) of the Central Excise Act, 1944. The central issue revolved around whether the said activities attracted Excise duty liability.

According to Section 35G of the Act, High Court appeals are maintainable against Tribunal orders not related to duty rate or goods' value assessment. However, issues concerning duty rate or levy fall under Supreme Court jurisdiction as per Section 35L. The determination of taxability or excisability of goods is now considered part of the rate of duty determination, as clarified by a previous judgment.

Following the amendment by Finance Act No. 2/2014, the determination of any question related to the rate of duty now includes assessing the taxability or excisability of goods for assessment purposes. Consequently, the present appeals were deemed not maintainable before the High Court and were directed to be returned. The appellants were advised to pursue appropriate legal proceedings or appeals in accordance with the law.