2016 (4) TMI 237 - HC - Central Excise

Monetary limits for filing the appeals - Amount involved is less than ₹ 15 lacs - Held that - the limits specified may not apply to certain exceptions, at the same time, the Circular dt.01/01/2016 which is in furtherance of the circular dt.17/12/2015, clearly envisages that the present instructions will apply retrospectively to all the pending appeals and appeals to be filed henceforth in High Courts/Tribunals, subject to exceptions where the monetary limits if is less than ₹ 15 lacs, can be preferred in High Courts. Taking note of the CBEC Circular dt. 17/12/2015 & 01/01/2016, the monetary limits in these appeals is less than ₹ 15 lacs, which is much less than what has been prescribed for filing appeal before the High Courts and deserve to be dismissed as not pressed. - Decided against the revenue

Issues:
1. Appeal against order of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) involving less than 15 lacs.
2. Circular issued by Central Board of Excise & Customs regarding monetary limits for filing appeals.
3. Clarificatory circular issued in continuation of the earlier circular.
4. Applicability of the circulars to pending and future appeals.
5. Dismissal of appeals due to monetary limits specified in the circulars.

Analysis:
1. The appeals in question are directed against the order of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), with the Revenue acknowledging that the amount involved in these appeals is less than 15 lacs. This sets the threshold for the issues at hand, indicating the monetary limit for filing appeals.

2. A circular dated 17/12/2015 was issued by the Central Board of Excise & Customs, Ministry of Finance Department of Revenue, under various Acts, fixing monetary limits for filing appeals before different forums. The circular aimed at reducing litigation by regularizing the limits for appeals, similar to Direct Tax circulars. The circular specified different monetary limits for CESTAT, High Courts, and Supreme Court, emphasizing the need for uniformity and clarity in filing appeals.

3. Subsequently, a clarificatory circular was issued on 01/01/2016 in continuation of the earlier circular. This clarificatory circular reiterated the applicability of the instructions to pending appeals in High Courts and CESTAT. It directed the concerned authorities to take necessary actions for cases falling below the new threshold limits, subject to the conditions specified in the circulars issued earlier.

4. The circulars indicated that the specified monetary limits might not apply to certain exceptions mentioned in the circulars. However, the clarificatory circular emphasized that the instructions would apply retrospectively to all pending and future appeals in High Courts and Tribunals, subject to exceptions where the monetary limits are less than 15 lacs. This highlighted the importance of adhering to the prescribed limits while filing appeals.

5. Considering the monetary limits set by the circulars, which were lower than the amount involved in the appeals, the High Court decided to dismiss the appeals as not pressed. It was clarified that any substantial legal questions raised in the appeals could be examined in the future if necessary. The Court also allowed the Revenue to move an application for recalling the order if the appeals fell within the exceptions specified in the circulars. This decision was made in light of the CBEC Circulars to ensure compliance with the prescribed monetary limits and to streamline the appeal process.

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