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Case Law Details

Case Name : Commissioner of Customs And Central Excise Vs P And C Constructions Pvt. Ltd (Supreme Court of India)
Appeal Number : Civil Appeal No. 1434 Of 2020
Date of Judgement/Order : 01/02/2024
Related Assessment Year :
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Commissioner of Customs And Central Excise Vs P And C Constructions Pvt. Ltd (Supreme Court of India)

Introduction: The Supreme Court of India recently rendered a significant decision in the case of Commissioner of Customs And Central Excise vs P And C Constructions Pvt. Ltd. The dismissal of the Service Tax Appeal was grounded in the principle of low tax effect, aligning with the guidelines outlined in Circular No. 17 of 2019, Dated: 08/08/2019 issued by the Department of Revenue, Ministry of Finance.

Detailed Analysis: In the detailed examination of the case, Ms. Nisha Bagchi, the learned senior counsel representing the Revenue, put forth the argument that the appeal must be dismissed due to its low tax effect. This assertion was made in line with the provisions set out in Circular No. 17 of 2019, which provided a framework for determining the viability of pursuing appeals based on the quantum of tax involved.

The Circular, issued by the Department of Revenue, Ministry of Finance, aimed to streamline the handling of appeals by establishing thresholds for filing based on the tax impact. Cases falling below these thresholds were considered to have a low tax effect, leading to a recommendation for their dismissal. In this instance, the Supreme Court adhered to the circular’s guidance and accordingly dismissed the Civil Appeal.

Conclusion: The dismissal of the Service Tax Appeal by the Supreme Court underscores the increasing significance of considerations related to the tax effect in legal proceedings. The alignment with Circular No. 17 of 2019 reflects a broader trend in judicial administration, emphasizing efficiency and resource optimization.

This decision serves as a reminder for litigants and legal practitioners to carefully assess the tax implications of their appeals. The adoption of guidelines such as those outlined in the circular signifies a proactive approach by the judiciary to manage its caseload effectively. In cases with a low tax effect, parties may encounter a higher likelihood of dismissal based on established thresholds.

As the legal landscape continues to evolve, it becomes imperative for stakeholders to stay abreast of such developments, ensuring that their legal strategies align with the prevailing norms and guidelines. The Commissioner of Customs And Central Excise vs P And C Constructions Pvt. Ltd. case serves as a notable precedent in navigating the nuanced intersection of tax impact and judicial proceedings.

FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER

It is stated by Ms. Nisha Bagchi, learned senior counsel appearing for the Revenue that this appeal has to be dismissed on the ground of low tax effect as being covered by the Circular No. 17 of 2019 dated 08.08.2019 issued by Department of Revenue, Ministry of Finance.

In view of the statement made, this Civil Appeal is therefore dismissed.

Pending applications, if any, shall stand disposed of.

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