2017 (3) TMI 1584 - HC - Customs

Monetary limit involved in the appeal - Whether CESTAT, Allahabad is correct in holding that the amount in dispute are less than prescribed limit under the litigation policy when the amount of duty with penalty and interest involved in much above ₹ 10,00,000/-? - Held that - disputed amount i.e. tax amount of ₹ 10,91,500/- and penalty ₹ 10,91,500/- makes much more than ₹ 20 Lacs and it cannot be said that appeal was below monetary limit. Tribunal has committed manifest error in taking otherwise view in the matter - appeal allowed.

Summary

Issues involved:
Appeal under Section 130 of Customs Act, 1962 against Final Order, substantial questions of law regarding the monetary limit under the litigation policy.

Analysis:
The case involved an appeal under Section 130 of the Customs Act, 1962 against a Final Order passed by the Customs, Excise & Service Tax Appellate Tribunal in a matter concerning Customs Appeal. The substantial questions of law raised were related to the monetary limit under the litigation policy. The questions revolved around whether the Tribunal correctly held that the disputed amount was below the prescribed limit under the litigation policy and whether the impugned Final Order was contrary to the instructions relating to the litigation policy.

In addressing the questions, the Court referred to Circulars dated 17-8-2011 and 17-12-2015 regarding the monetary limits for filing appeals. The Circulars specified different monetary thresholds for filing appeals based on the amount of duty, penalty, and interest involved. The Court highlighted that even though the monetary limit had been revised in the later Circular, the earlier Circular of 17-8-2011 was still applicable for certain aspects. It was emphasized that the amount of duty, penalty, and interest collectively should not exceed the prescribed limits for filing appeals in the Tribunal or High Court.

The Court specifically analyzed the disputed amounts in the present case, noting that the customs duty and penalties exceeded the monetary limit specified in the Circulars. The disputed tax amount along with penalties amounted to more than the prescribed limit for filing appeals. It was concluded that the Tribunal erred in its decision as the disputed amount exceeded the monetary threshold. Consequently, the Court ruled in favor of the appellants-Revenue and against the Assessee, allowing the appeal and setting aside the impugned Final Order passed by the Tribunal. The matter was remanded back to the Tribunal for a decision in accordance with the law.

Additionally, the Court directed that the Appellant shall be entitled to costs in the matter. The judgment provided a detailed analysis of the monetary limits under the litigation policy and how they applied to the specific case, ensuring a thorough examination of the issues raised during the appeal process.