2025 (5) TMI 62 - HC - Central Excise

Entitlement to a special rate of value addition @ 73.5% which is based on the actual value of the cost of raw materials and inventory reflected in the audited financial statement - HELD THAT - A bare perusal of section 35G(1) of the Central Excise Act 1944 clearly reveals that no appeal shall lie before the High Court from any order passed by the learned Tribunal (on or after the 1st day of July 2003) if it is an order which relates among other things to the determination of any question having a relation to the rate of duty of excise or to the value of goods for the purposes of assessment. Since this matter relates to valuation this High Court has no jurisdiction to entertain try and determine the issue as sought to be raised by the Commissioner of Central Excise Customs and Service Tax Siliguri. Liberty granted to the Commissioner of Central Excise Customs and Service Tax Siliguri to approach the Hon ble Supreme Court of India for redressal of their grievances if any in accordance with law - application disposed off.

Summary

The Sikkim High Court, per Chief Justice Biswanath Somadder, dismissed the statutory appeal filed by the Commissioner of Central Excise, Customs and Service Tax, Siliguri, against the Customs, Excise and Service Tax Appellate Tribunal's (CESTAT) order granting the respondent a special rate of value addition @ 73.5%. The Court relied on Section 35G(1) of the Central Excise Act, 1944, which precludes High Court appeals from Tribunal orders "relating... to the rate of duty of excise or to the value of goods for the purposes of assessment," unless a substantial question of law arises. Since the appeal concerned valuation, the High Court held it lacked jurisdiction to entertain the matter. The Court granted liberty to the Commissioner to seek redressal before the Supreme Court. The appeal was accordingly disposed of.