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2024 (5) TMI 1105 - AT - CustomsMonetary Limit - Filing of Appeal by the Revenue / Department - threshold limit for filing appeals as per Central Board of Indirect Customs (CBIC) circulars - Instruction are binding effect Or not - Valuation - Validity of enhanced value assessment - HELD THAT - In the present cases, we are concerned with the CBIC s latest circular dated 02.11.2023, wherein it has been specifically prescribed that no appeal shall be filed before the CESTAT below the monetary limit of Rs.50 lakhs and if already filed, will have to be withdrawn. These instructions have been issued in exercise of its power u/s 131BA of the Customs Act, 1962. The perusal of the circular cited supra shows that the same prescribes monetary limit below which the department shall not file appeal before the CESTAT, the High Courts and the Supreme Court. In so far as, the CESTAT is concerned the monetary limit prescribed is Rs.50 lakhs. Para 3 of the said circular prescribes that in respect of the pending cases before the CESTAT, the High Courts and the Supreme Court which are below the monetary limits, process of withdrawal of the appeal would be undertaken by the department. It is pertinent to mention here that the amount of duty involved in each of the appeal is below of the threshold limit prescribed in circular dated 02.11.2023 issued by the CBIC wherein it is provided that if the duty amount involved is less than Rs.50 lakhs, then no appeal shall be filed before the CESTAT, and if already filed, the same will be withdrawn by the department. Thus, we are of the considered opinion that the present appeals filed by the department are not maintainable in view of the instructions issued by the Board and consequently we dismiss all these 13 appeals leaving the question of law, if any, open.
Issues Involved:
1. Validity of enhanced value assessment by the department. 2. Applicability of CBIC's monetary limit instructions for filing appeals. Summary: Issue 1: Validity of Enhanced Value Assessment The respondent, M/s Hanuman Prasad & Sons, imported Polyester Knitted Fabrics and self-assessed duty on the declared transaction value. The department reassessed the goods at a higher value, which the importer initially accepted without protest. However, the importer later challenged the assessment, and the Commissioner of Customs (Appeals) set aside the reassessment, restoring the self-assessment. The Commissioner (Appeals) based the decision on several grounds: - Acceptance of enhanced value does not preclude challenging the enhancement, citing the Apex Court decision in Dunlop India Ltd. - None of the grounds u/r 12 of CVR 2007 existed to merit rejection of the declared value. - The assessment was arbitrary and illegal for not adhering to Section 14 of the Act read with CVR 2007, referencing the Apex Court decision in South India Television (P) Ltd. - The reliance on NIDB data was incorrect as it did not meet the criteria u/r 5 of CVR 2007. - For applying Rules 5 & 6, adjustments must be based on demonstrated evidence. Issue 2: Applicability of CBIC's Monetary Limit Instructions The respondent argued that the appeals are not maintainable due to the monetary threshold limits set by the Ministry of Finance, CBIC, which prohibit filing appeals below Rs. 50 lakhs. The respondent cited various instructions and circulars issued by the Ministry to reduce litigation, including the latest instructions dated 02.11.2023. The respondent also referenced multiple judicial decisions supporting the binding nature of these instructions on the department. The department contended that the appeals fall under exceptions to the monetary limit instructions and justified the filing based on an interim order in a similar case. However, the Tribunal found that the appeals do not fall under the exceptions and are below the monetary limit prescribed in the instructions dated 02.11.2023. Conclusion: The Tribunal dismissed all 13 appeals filed by the department, citing the binding nature of the CBIC's instructions and the consistent judicial stance on dismissing appeals below the prescribed monetary limits. The Tribunal left the question of law open. (Order pronounced in the open court on 22.05.2024)
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