Case Law Details
Commissioner Of Customs Vs Godavari Drugs Ltd. (Supreme Court of India)
Introduction: The recent Supreme Court judgment in the case of Commissioner of Customs vs. Godavari Drugs Ltd. has significant implications for appeal cases, particularly in matters related to indirect taxes and customs. This legal development is a result of the Circular dated 02.11.2023 issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs (CBIC), which raised the monetary limit for cases before the Supreme Court to Rs.2 Crores.
Detailed Analysis: Shri Arijit Prasad, the learned senior counsel representing the appellant – the Department, brought attention to the circular during the proceedings. The circular, issued by the CBIC, has effectively increased the monetary threshold for cases presented before the Supreme Court, extending its applicability even to matters concerning indirect taxes and customs.
As a consequence, the appeal in question was dismissed by the Supreme Court. The dismissal is attributed to the low tax effect in alignment with the newly raised monetary limits. This development marks a noteworthy shift in the legal landscape, as it streamlines the adjudication process by adjusting the financial criteria for cases to be considered by the highest judicial authority in the country.
The submission made by the learned senior counsel is now part of the official record, emphasizing the reliance on the CBIC Circular as a crucial factor in the court’s decision. The dismissal of the appeal on the grounds of low tax effect underscores the court’s commitment to efficiency and prioritizing cases with significant financial implications.
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