The Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs, Judicial Cell, has issued a significant update on government litigation. In a move to streamline and reduce the burden on the legal system, new monetary limits for filing appeals before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), High Courts, and the Supreme Court have been established. This article will delve into the details of this development, its implications, and the exceptions.
1. Monetary Limits for Appeals: The Central Board of Indirect Taxes & Customs has set monetary limits below which appeals will not be filed in the mentioned forums. The new limits are as follows:
- Supreme Court: Rs. 2 Crore
- High Courts: Rs. 1 Crore
- CESTAT: Rs. 50 Lakh
This move is aimed at reducing the government’s involvement in legal disputes over relatively smaller amounts, allowing judicial resources to be allocated more efficiently.
2. Exceptions to the Limits: Not all cases fall under these monetary limits. Adverse judgments related to certain issues must be contested regardless of the amount involved. These include cases where:
- The constitutional validity of the provisions of an Act or Rule is challenged.
- A Notification, Instruction, Order, or Circular has been declared illegal or ultra vires.
- Classification and refund issues of legal or recurring nature are at stake.
This ensures that critical legal matters are not overlooked, regardless of the financial implications.
3. Withdrawal Process: For pending cases within the revised limits, the withdrawal process will follow the current practice established for cases from the Supreme Court, High Courts, and CESTAT. The move to streamline withdrawal processes aligns with the overall objective of reducing government litigation.
Conclusion:
The Ministry of Finance’s announcement of new monetary limits for filing appeals is a significant step toward reducing government litigation and making the legal process more efficient. These limits will ensure that resources are channeled into essential legal matters, while exceptions safeguard vital issues. This development will streamline the withdrawal process for pending cases within the limits, emphasizing the need for a more practical and cost-effective approach to handling legal matters.
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F. No. 390 Misc/30/20231C
Ministry of Finance, Department of Revenue
Central Board of Indirect Taxes & Customs
(judicial Cell)
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‘B’ Wing. 4th Floor, HUDGO VISHALA Building Bhikaji Cama Place, R. K. Puram, New Delhi-66
Date. 02.11.2023
INSTRUCTION
To,
1. All Pr. Chief Commissioners/ Chief Commissioners / Pr. Commissioners/ Commissioners of Customs/ Customs (Prey.)/ GST & CX;
2. All Pr. Director Generals/ Directors Generals under CBIC;
3. Chief Commissioner (AR); Commissioners (Legal) CBIC/ Directorate of Legal Affairs
4. webmaster.cbec@icegate.gov.in
Subject: 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 131BA of the Customs Act, 1962 and in partial modification of earlier instruction issued from F. No. 390/Misc./163/2010-JC dated 17.08.2011, the Central Board of Indirect Taxes & Customs (hereinafter referred to as the Board) fixes the following monetary limits below which appeal shall not be filed in the CESTAT, High Court and the Supreme Court:
| S. No. | Appellate Forum | Monetary limit |
| 1 | SUPREME COURT | Rs. 2 Crore |
| 2 | HIGH COURTS | Rs. 1 Crore |
| 3 | CESTAT | Rs. 50 Lakh |
2. Adverse judgments relating to the following should be contested irrespective of the amount involved:
a) Where the constitutional validity of the provisions of an Act or Rule is under challenge;
b) Where Notification/ Instruction/ Order or Circular has been held illegal or ultra vires;
c) Classification and refund issues which are of legal and/ or recurring nature.
3. Withdrawal process in respect of pending cases in above forums, as per the above revised limits, will follow the current practice that is
being followed for the withdrawal of cases from the Supreme Court. High Courts, and CESTAT.
Bhagwati Prasad Sharma
Date 02-11-2023 17:41 : 45
Deputy Secretary, Review
Email: sogc.cbec@nic.in
Sir, it appears that a new exception from low mon grounds, i.e. Classification and refund issues is being introduced in this circular. However, it appears that, this circular issued as per section 131BA of the Customs Act, 1962 and hence, will apply to only customs clasisfication/refund matters. Can anybody confirm or differ with the above view please.