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Service Tax » New Monetary limits for filing appeals before CESTAT/HC/SC
Posted on:2011-09-02

Monetary limits for filing appeals in Customs, Excise & Service-tax cases by the department - Revised.
-         By V.K. Jain (Retd. CESTAT Member)
 
The Ministry of Finance issued instructions dt. 17.08.2011 effective from 1.09.2011, has revised the monetary limits for filing appeals in various forums in departmental appeals in Customs, Excise and Service Tax matters. While the duty interest or penalty involved should be minimum Rs. 5 lacs for appeal to the Customs, Excise and Service Tax Tribunal, (CESTAT), the same would be 10 lacs in case of appeal before the High Court and Rs. 25 lacs in case of appeal before the Supreme Court. These instructions had been issued by the Ministry for reduction of government litigation. The determinative element in the above limits would be the duty/tax under dispute. To illustrate further in a case involving duty of Rs. 5 lacs or below with equal penalty and interest as the case may be, no appeal shall be filed in the CESTAT. Similarly, no appeal shall be filed in the High Court if the duty involved does not exceed Rs. 10 lacs with or without penalty interest. Likewise no civil appeal or Special Leave Petition in the Supreme Court will be filed in cases involving duty involved is Rs. 25 lacs with or without penalty or interest or otherwise. However, whether the imposition of the penalty is the subject matter of dispute and the said penalty exceeds the limit prescribed, then the matter could be litigated further. It may also be added that where the subject matter of dispute is the demand of interest and amount of interest exceeds the prescribed limit then the matter may require further litigation.
 
The monetary limits as above will not apply to cases challenging adverse judgements relating to constitutional validity of provisions of Act or Rules or where Notification, instruction, order or circular has been held illegal/ultra-virus.
The limits as above will not be applicable to applications filed before the Joint Secretary (Revision Application). In case of audit objections also, the appeals would be subjected to such monetary limits. It may also be clarified that in cases of refund also above limits will apply.
In a case whether a part of duty demanded is not disputed and is paid and outstanding duty under dispute is less than the monetary limit/prescribed limit, no appeal shall be filed. In other words monetary limits shall apply on the disputed duty and not on the total duty demanded in a case.  
 
 
 
 
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