2013 (6) TMI 465 - AT - Service Tax

Appeal by Revenue before CESTAT - maintainability - Held that - an identical issue was before the Hon ble High Court of Gujarat in the case of Stovec Industries Limited 2013 (1) TMI 72 - GUJARAT HIGH COURT , wherein the Hon ble High Court vide judgment dated 10.7.2012 applied the Circular dated 17.08.2011 for the issue which was decided by the Tribunal 2011 (3) TMI 1099 - CESTAT, AHEMDABAD and against which the Revenue had filed appeal before issuance of Circular. In the present case the amount involved in this appeal is only Rs. 2,52,146/- - Appeal filed by revenue dismissed.

Summary

Issues:
1. Interpretation of circulars regarding the monetary limit for filing appeals before the Tribunal.
2. Applicability of circulars issued by the CBEC in relation to the appeal filed by the Revenue.
3. Consideration of the judgment of the Hon'ble High Court in a similar case.

Analysis:
1. The appeal was filed by the Revenue against an order in appeal where the amount involved was Rs. 2,52,146. The learned counsel for the Appellant pointed out a Board Circular dated 17.08.2011, stating that appeals need not be filed before the Tribunal for amounts less than Rs. 5 Lakhs. However, the Circular in force during the relevant period specified a limit of Rs. 2 Lakhs for not filing appeals before the Tribunal.

2. The Circular issued by the CBEC on 20.10.2010 directed lower authorities not to file appeals before CESTAT if the amount involved was less than Rs. 2 Lakhs, as per the National Litigation Policy. This Circular was later reiterated on 17.8.2011, increasing the monetary limit for filing an appeal to Rs. 5 Lakhs. The Revenue had filed the appeal in January 2011 when the Circular of 17.8.2011 was not in effect. Reference was made to a judgment of the Hon'ble High Court in a similar case, where it was held that the Department is bound by its own circulars.

3. The Hon'ble High Court's judgment in the case of Stovec Industries Limited was considered, where it was emphasized that the Department should have brought the Circular dated 17.08.2011 to the Court's notice. The High Court dismissed the appeal due to the amount involved being below the specified limit. The Tribunal, following the High Court's judgment, dismissed the Revenue's appeal, keeping the legal questions open for future cases.

In conclusion, the Tribunal upheld the dismissal of the Revenue's appeal based on the circulars in effect during the relevant period and the precedent set by the Hon'ble High Court, emphasizing the Department's obligation to adhere to its own circulars regarding the monetary limits for filing appeals before the Tribunal.