Principal Commissioner of Customs Vs Sh. Deepak Vats (CESTAT Delhi)
The case concerns appeals filed by the Revenue before the Tribunal against a common order passed by the Commissioner of Customs (Appeals), relating to imposition of penalties under Sections 112(b) and 114AA of the Customs Act, 1962 in connection with confiscation of gold bars. The penalty amounts involved in each individual appeal were less than ₹50 lakh.
The Tribunal examined the maintainability of the appeals in light of the litigation policy issued by the Central Board of Indirect Taxes and Customs (CBIC) under Section 131BA of the Customs Act. As per the latest instruction dated November 2, 2023, a monetary threshold of ₹50 lakh has been prescribed, below which appeals should not be filed before the Tribunal to reduce government litigation.
Although the instruction allows exceptions for certain specified issues irrespective of the monetary limit, the Tribunal noted that the present matter, involving penalties under Sections 112(b) and 114AA relating to confiscated gold bars, did not fall within those exceptions.
Considering that the penalty amounts in each appeal were below the prescribed threshold, the Tribunal held that the appeals were not maintainable under the litigation policy. Accordingly, the appeals filed by the Revenue were dismissed without going into the merits of the case.
