2022 (7) TMI 468 - AT - Customs

Rectification of mistake - error apparent on the face of record - technical nature of the request involved - monetary limit of amount involved in the appeal - HELD THAT - Keeping in view the technical nature of the request involved in the impugned application and that the subject matter is to be considered by the bench only, the presence of respondent-assessee is held to be not required, the application is to be decided. The monetary limits mentioned in Circular dated 22.08.2019 bearing F.No. 390/Misc./116/2017-JC issued by Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs (Judicial Cell) with respect to the present Tribunal/High Courts/ Supreme Court (respective monetary limit) is mentioned in the table in the said Circular - from perusal is abundantly clear that the instruction dated 22.08.2019 with reference to the monetary limits are not applicable to the Customs matters. Dismissing the impugned customs appeal as withdrawn based upon that Circular on the ground of monetary limit issue is therefore an error apparent on the record of the said final order. Instruction issued by CBIC vide F. No. 390/Misc./163/2010-JC dated 17.12.2015 have also been brought to the notice vide which the monetary limit for filing an appeal before CESTAT in a Customs matter is Rs.10.00 Lakhs. The present appeal relates to refund of an amount of Rs.10,95,224/-which has been ordered by the Adjudicating Authority to be credited to the Consumer Welfare Fund under Section 27 of the Customs Act 1962. The amount involved is more than the monetary limit fixed by Department of Revenue in a customs matter for filing an appeal before CESTAT. In view thereof dismissal of a customs appeal holding monetary limit for such appeal to be fixed as Rs.50,00,000/- before CESTAT is held to be an error apparent on the face of impugned final order. Hence, the rectification in the impugned final order dated 30.12.2021 is hereby allowed. Application allowed.

Summary

Issues:
Rectification of mistake in final order dismissing appeal based on Circular regarding monetary limits for filing appeals in Legacy Central Excise and Service Tax, applicability of Circular to Customs matters, monetary limit for filing appeal before CESTAT in Customs matter, error apparent on the face of the impugned final order.

Analysis:
The judgment dealt with an application for the rectification of a mistake in a final order dismissing an appeal based on a Circular regarding monetary limits for filing appeals in Legacy Central Excise and Service Tax. The Department had filed the application, arguing that the Circular applied only to Legacy issues of Central Excise and Service Tax, not Customs matters. The order had dismissed the appeal as withdrawn due to the amount involved being less than the threshold limit of Rs.50,00,000. The Department contended that this was an error as the Circular did not apply to Customs issues.

The Member (Judicial) reviewed the Circular dated 22.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs (Judicial Cell). The Circular explicitly stated that it applied only to Legacy issues of Central Excise and Service Tax and pending cases thereof. The Member observed that the Circular's monetary limits did not extend to Customs matters. Therefore, dismissing the Customs appeal based on the Circular's monetary limit was deemed an error on the face of the final order.

Additionally, reference was made to an instruction issued by the CBIC on 17.12.2015, which set the monetary limit for filing an appeal before CESTAT in a Customs matter at Rs.10.00 Lakhs. The present appeal involved a refund of Rs.10,95,224, exceeding the monetary limit set by the Department of Revenue for filing an appeal in a Customs matter. Consequently, the dismissal of the Customs appeal based on the incorrect monetary limit of Rs.50,00,000 was considered a clear error. The rectification in the final order was allowed, and the appeal was restored for disposal on its merits.

In conclusion, the application for rectification was allowed, and the matter was directed to be relisted before the appropriate bench for further proceedings based on the merits of the case. The judgment clarified the distinction between monetary limits for Legacy Central Excise and Service Tax issues and Customs matters, ensuring the correct application of legal provisions in appeals before CESTAT.