Filing of Civil Appeals Against CEGAT orders involving rate of duty and valuation-Review/Scrutiny in CBEC- Instructions reg. - Central Excise - 313/29/97-CX

Circular No. 313/29/97-CX dated 6/5/97 F.No. 390/107/97-JC Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs Subject: Filing of Civil Appeals Against CEGAT orders involving rate of duty and valuation-Review/Scrutiny in CBEC- Instructions reg. An appeal lies to the Supreme Court under section 13CE of the C.A. 1962/ Section 35L of the Central Excise Act against the CEGAT order relating to rate of duty and valuation for the purpose of assessment. The appeal is required to be filed by the jurisdictional Commissioner within 60-days from the date of receipt of CEGAT order in the Commissionerate. Prior to 1995, cases relating to rate of duty and valuation were centralised in the Special Benches of Cegat at Delhi. After the amendment in the Acts in 1995 such cases are to be disposed of by the Regional Benches also. 2. Till now, the practice had been to scrutinise in the Board Office each and every CEGAT order relating to rate of duty and valuation (for the purpose of assessment) after obtaining the comments of CCE/ CDR. With the decentralisation of work relating to such cases in CEGAT as well as increased disposals by CEGAT, the practice of suo moto scrutiny of all such CEGAT orders by the Board has become somewhat unmanageable and impracticable. 3. The matter has been examined in the Board Office. After carefully considering all aspects as well as Board's earlier instructions issued vide D.O.F. No. 390/185/91-JC dated 29.10.94, the Board has decided as follows:- (a) The Board will not henceforth suo moto scrutinise the CEGAT orders. The jurisdictional Commissioner would be primarily responsible for examining each and every very order for filing civil appeal or Reference Application, as the case may be. If the Commissioner feels that a civil appeal under section 35L/ 130E is to be filed against a particular CEGAT order relating to rate of duty and valuation (for the purpose of assessment) he should submit a detailed proposal giving grounds for appeal and other necessary details to the Board, (by name to Commissioner (R)/ Director (JC) within 10 days from the date of receipt of the certified copy of the CEGAT order in his office. The proposal should be sent in the prescribed proforma along with (i) copy of CEGAT order indicating date of receipt by the Commissioner; (ii) copy of order in original/ order in appeal passed by the Commissioner; (iii) copies of SCNs; (iv) Board's instructions, if any; (v) copies of relied upon decisions in the CEGAT order; (vi) any other relevant document. (b) It must be ensured in the Commissionerate that every CEGAT order whether in favour or against the revenue is examined and reviewed upto the level of Commissioner; within the given time, for acceptance or otherwise. (c) As soon as the proposal is received in the Board Office the CDR would be asked to send the RMS/ Paper Book. The Board will examine only such proposals for taking decisions to file appeal in the Supreme Court. (d) The present practice of telex reports from Commissioners regarding CEGAT orders should be discontinued. (e) If the CDR feels that a particular CEGAT order is not correct and acceptable he should immediately send his report to jurisdictional Commissioner detailing out the grounds and his iews. A copy of this communication along with Paper Book should be sent by CDR to Commissioner (R) in CBEC. CDR should take this action within 10 days of the passing ot the CEGAT order in question. (f) The Chief Commissioner would at random examine the correctness or otherwise of at least 10% of the CEGAT orders which are against the Department and which have been accepted by the Commissioner. He would send quarterly report in this regard to Member (L J) in CBEC. (g) The CDR would collect all the copies of CEGAT orders relating to rate of duty and valuation meant for CBEC and would send them on weekly basis to the Judicial Cell by name to Director (JC) in CBEC. 5. Receipt of these instructions may be acknowledged forthwith. Sd/- (M.K. Gupta) Director (Review)