Commissioner Vs Krishna Laxmi Steel Udyog Pvt. Ltd (Jharkhand High Court)
The Jharkhand High Court disposed of multiple appeals filed by the Department on the ground of low tax effect, noting that the amount involved in each case was less than ₹2 crore. Although the Department argued that the matter involved the constitutional validity of Rule 8(3A) of the Central Excise Rules, 2002—falling within the exception under Instructions dated 02.11.2023—the Court found that this issue did not arise in the present appeals. It observed that Rule 8(3A) had already been declared ultra vires by several High Courts, a fact acknowledged by the Department itself, and that the Tribunal had merely followed those decisions. The Court further noted that even the substantial questions of law proposed did not involve the constitutional validity of the Rule. It also expressed doubt as to whether such constitutional issues could be examined in these appeals. Accordingly, relying on departmental instructions discouraging litigation below the ₹2 crore threshold, the Court disposed of the appeals while leaving questions of law open.
FULL TEXT OF THE JUDGMENT/ORDER OF JHARKHAND HIGH COURT
Heard learned counsel for the appellants.
2. In all these appeals, tax effect is less than rupees two crores. However, learned counsel for the appellants states that he has no instructions to withdraw these appeals.
