TMI Blog2018 (12) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... be unless the tax effect involved is higher than the minimum threshhold respectively prescribed in such circulars - In the present case, we are governed by the latest circular of CBIC dated 11th July, 2018. Circular is issued in exercise of powers under Section 35R of the Central Excise Act, 1944, which pertains to appeal not to be filed in certain cases. Subsection (1) of Section 35R provides that the Central Board of Excise and Customs may from time to time issue orders or instructions or directions fixing such monetary limits as it may deem fit for the purposes of regulating the filing of the appeal, applications, revision or reference by the Central Excise Officers under the provisions of Chapter VIA of the Central Excise Act, pertai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the appeal was taken up for admission herein, learned counsel for the respondent-assessee raised preliminary objection contending that the tax effect involved in this appeal is below ₹ 50 lakhs, which is the minimum prescribed by the CBIC in its circular dated 11th July, 2018 to enable the department to file and press the appeals before the High Court. In this context, we had heard learned counsel for the parties. 2. Learned counsel Shri Mishra for the department submitted that he has not been instructed to withdraw the appeal, though he agreed that the tax effect involved in this appeal is less than ₹ 50 lakhs. He placed on record a copy of a letter dated 22nd November, 2018 written by the Assistant Commissioner, Raigad c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircular of CBIC dated 11th July, 2018. Relevant portion of the circular reads as under: In exercise of the powers conferred by Section 35R of the Central Excise Act, 1944 made applicable to Service Tax vide Section 83 of the Finance Act, 1944, the Central Board of Indirect Taxes and Customs fixes the following monetary limits below which appeal shall not be filed in the CESTAT, High and Supreme Court: Sr. No. Appellate Forum Monetary Limit 1. CESTAT Rs.20,00,000/- 2. High Courts Rs.50,00,000/- 3. Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not file appeal before CESTAT, High Court or the Supreme Court. In so far as High Court is concerned, the monetary limit prescribed is ₹ 50 lakhs. The circular in Paragraph No.3 provides that in respect of pending cases process of withdrawal would be undertaken as per such revised limits. This paragraph also clarifies that all other terms and conditions of the earlier instructions will continue to apply. Paragraph No.4 of the circular further clarifies that the cases filed in Paragraph No. 1.3 of the instructions dated 17th August, 2011 would be contested irrespective of the prescribed monetary limits. 8. The earlier circular dated 17th August, 2011 also prescribed monetary limits for filing appeals, revision etc. In Paragra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y even to pending cases. 11. In the present case, the department does not point out that the monetary limit is higher than one prescribed by CBIC in its circular dated 11th July, 2018 or that the case falls within any of the exceptions provided in the circular dated 17th August, 2011. The letter of the Assistant Commissioner, Raigad to the counsel for the department only conveys that it is wholly discretionary within the powers of the Commissioner whether to withdraw certain appeal or not. We do not think that this brings out the correct intention of the CBIC or for that matter correct position in law. As noted, the circular dated 11th July 2018 is issued in exercise of statutory powers and thus has statutory force. The successive circul ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
