Case Law Details
Principal Commissioner of CGST Vs Tata Consultancy Services Ltd. (CESTAT Mumbai)
Material Facts
The Revenue filed appeals before CESTAT Mumbai challenging the order dated 08.05.2017 passed by the Commissioner of Central Excise (Appeals), Mumbai-I. By the impugned order, the Commissioner (Appeals) had set aside the adjudication orders dated 31.03.2010, 29.07.2011 and 31.10.2011 passed by the original authorities and allowed the appeals in favour of the respondent.
The amounts involved in the four appeals were:
- Rs.25,19,486
- Rs.58,59,399
- Rs.27,92,761
- Rs.40,30,599
Procedural History
Aggrieved by the order of the Commissioner (Appeals), the Revenue preferred appeals before CESTAT Mumbai.
The Tribunal examined the maintainability of the appeals in light of the monetary limits prescribed by the Central Board of Indirect Taxes and Customs (CBIC) for filing appeals before the Tribunal.
Legal Issues
The Tribunal considered whether the Revenue’s appeals were maintainable where the disputed amount involved in each appeal was below the monetary limit prescribed by the CBIC.
Relevant Statutory Provisions
- Section 35R of the Central Excise Act, 1944.
- Section 83 of the Finance Act, 1994.
- CBIC Instruction F. No. 160390/20/2024-JC-CBEC dated 06.08.2024.
Revenue’s Submissions
The Revenue challenged the order of the Commissioner (Appeals) that had set aside the adjudication orders and allowed the respondent’s appeals.
Tribunal’s Observations and Findings
The Tribunal observed that, in exercise of powers under Section 35R of the Central Excise Act, 1944, made applicable to service tax matters through Section 83 of the Finance Act, 1994, the CBIC had issued instructions from time to time to reduce Government litigation in Central Excise and Service Tax matters.
The Tribunal noted that the latest CBIC Instruction dated 06.08.2024 prescribed a monetary threshold of Rs.60 lakh, below which appeals are not to be filed before CESTAT.
It was also recorded that both parties confirmed that the disputed service tax amounts involved in each of the present appeals were below the prescribed threshold of Rs.60 lakh.
Considering that the disputed amounts were below the monetary limit prescribed by the CBIC Instruction dated 06.08.2024, the Tribunal held that the Revenue was not permitted to maintain the appeals before the Tribunal.
Final Ruling
The Tribunal held that the Revenue’s appeals were below the prescribed monetary threshold of Rs.60 lakh under the CBIC Instruction dated 06.08.2024.
Accordingly, all the Revenue appeals were dismissed under the Government’s Litigation Policy.
FULL TEXT OF THE CESTAT MUMBAI ORDER
Heard both sides and perused the case records.
2. Feeling aggrieved with the impugned order dated 08.05.2017 passed by the learned Commissioner of Central Excise (Appeals), Mumbai-I, Revenue has preferred these appeals before the Tribunal. In the impugned order, the learned Commissioner (Appeals) has set aside the adjudication orders dated 31.03.2010, 29.07.2011 & 31.10.2011 passed by the original authorities and allowed the appeal in favour of the respondents. The amounts involved in the impugned proceedings are Rs.25,19,486/-, Rs.58,59,399/-, Rs.27,92,761/- & Rs.40,30,599/- respectively. Insofar as the monetary limit for filing of appeal before the Appellate Tribunal is concerned, by deriving the powers conferred in Section 35R of the Central Excise Act, 1944, made applicable to matters relating to service tax under Section 83 of the Finance Act, 1994, the Central Board of Indirect Taxes and Customs (CBIC) has issued the instructions, from time to time, with the objective in reduction of the Government litigation in the area of Central Excise and Service Tax. In the latest instruction issued by the CBIC from file F. No. 160390/20/2024-JC-CBEC dated 06.08.2024, the threshold monetary limit of Rs. 60 lakhs has been prescribed, below which the appeal shall not be filed before the CESTAT.
3. In the case in hand, since the service tax demands confirmed in the adjudication orders (referred supra) are below the threshold limit of Rs.60,00,000/- (individual case wise) prescribed under the said Instruction dated 06.08.2024, Revenue is not permitted to file appeal before the Tribunal. Both sides have confirmed that the disputed amount of excise duty involved in the present appeals preferred by the Revenue is less than the monetary limit prescribed under the instruction dated 06.08.2024 issued by the CBIC.
4. Considering the disputed amounts of refund of service tax involved in the present appeals, which are below the prescribed threshold limit as per the Instruction dated 06.08.2024 issued by the CBIC, the appeals filed by the Revenue in our considered view, are liable to be dismissed. Accordingly, the appeals filed by Revenue are dismissed under the Litigation Policy of the Government.
(Dictated and pronounced in open court)
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