The Central Board of Indirect Taxes and Customs (CBIC) has notified the increase in the monetary limits for filing appeals by the Department before Customs, Excise and Service Tax Appellate (CESTAT), High Court and Supreme Court in legacy Central Excise & Service Tax.
In exercise of powers conferred by section 35R of the Central Excise Act, 1944 made applicable to Service Tax, the Central Board of Indirect Taxes and Customs has fixed the monetary limits which appeal shall not be filed in the CESTAT, High Court and Supreme Court.
The board has increased the monetary limit of CESTAT from Rs. 50 lakhs to Rs 60 Lakhs; high court from Rs. 1 crore to Rs. 2 crores and in case of Supreme Court the monetary limit has been enhanced from Rs. 2 Crores to Rs. 5 Crores.
Adverse judgements should be contested irrespective of the amount involved.
Firstly, case where the constitutional validity of the provisions of an Act or Rule is under challenge.
Secondly, case where Notification/ Instruction / Order/ Circular has been held illegal or ultra vires.
Applicability
The instruction applies only to legacy issues i.e., matters relating to Central Excise and Service Tax, and will apply to pending cases as well.
Relevant Provisions
Section 35R of the Central Excise Act, 1944 states that where, in pursuance of the orders or instructions or directions, issued under sub-section (1), the Central Excise Officer has not filed an appeal, application, revision or reference against any decision or order passed under the provisions of this Act, it shall not preclude such Central Excise Officer from filing appeal, application, revision or reference in any other case involving the same or similar issues or questions of law.
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No appeal, application, revision or reference has been filed by the Central Excise Officer pursuant to the orders or instructions or directions issued under sub-section (1), no person, being a party in appeal, application, revision or reference shall contend that the Central Excise Officer has acquiesced in the decision on the disputed issue by not filing appeal, application, revision or reference.
The Commissioner (Appeals) or the Appellate Tribunal or court hearing such appeal, application, revision or reference shall have regard to the circumstances under which appeal, application, revision or reference was not filed by the Central Excise Officer in pursuance of the orders or instructions or directions issued under sub-section (1).
CBIC-160390/20/2024
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