News Flash
  • CGST rates for Goods under different Notifications as amended from time to timeclick here
  • Letter to trade and industry associations inviting suggestions for budget 2018-19 has been issued and suggestions may be sent latest by 25th November 2017click here
  • IGST Rules, 2017 as amended upto 15/11/2017 have been uploaded
  • Letters regarding delivery and upgradation of IT infrastructure
  • Circular issued for manual filing and processing of refund claims in respect of zero-rated suppliesclick here
  • Notifications and Orders issued to implement the recommendations of the GST Council made in its 23rd meeting held on 10.11.2017.
  • Applications are invited for the post of Deputy Secretary/Director(ICD) and Deputy Secretary/Director(Drawback)click here
  • Letter regarding requirement of IT infrastructure at Customs formationsclick here
  • Field formations are requested to view the GST Performas with comments from GST-Policy wing on ‘www.cbecddm.gov.in/MIS/GSTHome/Feedback’ (after login into MIS) and give Feedback.
  • Decisions relating to Services in 23rd GST Council meeting at Guwahaticlick here
  • Changes in GST/IGST rate and clarifications in respect of GST rate on certain goods as approved by GST Council on 10.11.2017click here
  • Press Release On Changes recommended in Composition Scheme.click here
  • CBEC Press Release On GST Rate Changes.click here
  • Press release with respect to policy issues recommended in 23rd GST Council Meeting.click here
  • " Circulars on deemed export supplies from DTA to EOU/EHTP/STP/BTP Units and due date for generation of FORM GSTR-2A and FORM GSTR-1A issued"Click Here
  • Details of Vendors providing E-seals to exportersclick here
  • VPNoBB at Field Formations with less than 5 users/AIOs to be upgraded to 2 Mbps
  • REVISION OF PENSION CASES OF PRE-2016 PENSIONERS
  • Notification issued extending the due date for filing FORM GSTR-2 and FORM GSTR-3 for the month of July, 2017
  • Application of 'own merit' rule for determining seniority of Superintendents in Zones under CBEC -reg.click here
  • Two days course on Prevention of Wildlife Trafficking for the officers of CBEC of the rank of AC/DC/JC/Addl Commissioners and Commissioners of CBEC on 27th and 28th November, 2017click here
  • Notification for waiving late fee on delayed filing of FORM GSTR-3B for Aug & Sep, 2017 issued
  • UPS upkeep & maintenance activityclick here
  • Circular clarifying movement of goods on approval basis has been issued.click here
  • Circular on Authorized officer for enrollment of Goods and Services Tax Practitioner has been issued.click here
  • List of ports and ICDs wherein e-seal readers are to be provided by the vendors-.click here
  • Incase of any LAN-WAN issues please call 18002662232/18001214560 or mail Saksham.Seva@icegate.gov.in
View all

F.No.390/Misc./163/2010-JC

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

*****

New Delhi 17th  August 2011

INSTRUCTION

To,

 

  1. All Chief Commissioners and Directors General under the Central Board of Excise and Customs.
  2. CDR, Customs, Excise & Service Tax Appellate Tribunal.
  3. All Commissioners of Customs/Central Excise/Service Tax/All Joint Chief Departmental Representatives/Commissioner, Directorate of Legal Affairs.
  4. <webmaster.cbec@icegate.gov.in>

Sub:-                Reduction of Government litigation - providing monetary limits for filing appeals by the Department before CESTAT/High Courts and Supreme court - Regarding

In exercise of the powers conferred by Section 35R of the Central Excise Act, 1944 made applicable to Service Tax vide Section 83 of the Finance Act,1994 and Section 131BA of the Customs Act, 1962 the Central Board of Excise & Customs (hereinafter referred to as the Board) fixes the following monetary limits below which appeal shall not be filed in the Tribunal, High Court and the Supreme Court:

 

Sl.No.Appellate ForumMonetary limit
1.CESTATRs.5,00,000/-
2.HIGH COURTSRs.10,00,000/-
3.SUPREME COURTRs.25,00,000/-

 

  1. 2.         For ascertaining whether a matter would be covered within or without the aforementioned limits, the determinative element would be duty/tax under dispute.  To illustrate it further in a case involving duty of Rs. 5 lakhs or below with equal penalty and interest, as the case may be, no appeal shall be filed in the Tribunal.  Similarly, no appeal shall be filed in the HighCourts if the duty involved does not exceed Rs.10 lakhs with or without penalty and interest.  Further, the Commissionerates shall not send proposal to the Board for filing Civil Appeal or Special Leave Petition in the Supreme Court in a case involving duty up to Rs.25 lakhs, whether with penalty and interest or otherwise.    However, where the imposition of penalty is the subject matter of dispute and the said penalty exceeds the limit prescribed, then the matter could be litigated further.  Similarly, where the subject matter of dispute is the demand of interest and the amount of interest exceeds the prescribed limit, then the matter may require further litigation.

 

  1. 3.         Adverse judgments relating to the following should be contested irrespective of the amount involved:
    1. a)         Where the constitutional validity of the provisions of an Act or Rule is under challenge.
    2. b)         Where Notification/ Instruction/ Order or Circular has been held illegal or ultra vires

 

  1. 4.         Several queries connected with application of monetary limits have been raised by the field formations which were considered by the Board and are being clarified as below:-

 

IssuesClarifications
  1. Whether duty involved mentioned in the Instruction dated 20.10.2010 refers to duty outstanding to be collected or the total duty demanded for deciding the threshold limit prescribed therein.
In a case where a part of the duty demanded is not disputed and is paid and the outstanding duty under dispute is less than the monetary limit prescribed by the Board, no appeal shall be filed. In other words, monetary limit shall apply on the disputed duty and not on the total duty demanded in a case.
  1. Whether monetary limits would apply to cases of refund.
 It is clarified that the monetary limits being prescribed by the Board would apply to cases of refund as well.
 
  1. Whether applications being filed by the Department before office of Joint Secretary (Revision Application) would also be covered under the stipulation of monetary limits.
The limit specified herein will not be applicable to application filed before the Joint Secretary (Revision Application).
 
  1. Whether exclusion of audit objections mentioned in para 6(c) of Instruction dated 20.10.2010 would cover internal audit objection cases also or whether they would be limited to cases of revenue audit alone.
The intention was to apply the exclusion clause mentioned at para 6(c) only to disputes arising out of revenue audit objections accepted by the Department.  It has now been decided to delete the said exclusion clause (refer para 3 of this Instruction). Therefore, in all cases of audit objections accepted by the Department, while protective demands may continue to be issued but the same would be subjected to the monetary limits for filing appeal in the Tribunal, High Courts and the Supreme Court.

 

  1. 5.         The revised monetary limits shall come into force from 1.9.2011. 

 

  1. 6.         This Instruction is in continuation of earlier Instruction of even number dated 20.10.2010 and seeks to revise the monetary limits, exclusion clauses and clarifies the doubts raised by the field formations on this issue.

 

 

 

            (Sunil K. Sinha )

Director (R)

26162156