Time to raise monetary bar for Single Member Bench of CESTAT
A netizen sent us this:-
“Section 35D(3) of the CEA, 1944 reads –
“(3) The President or any other member of the Appellate Tribunal authorised in this behalf by the President may, sitting singly, dispose of any case which has been allotted to the Bench of which he is a member where-
(a) in any disputed case, other than a case where the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or
(b) the amount of fine or penalty involved,
does not exceed ten lakh rupees.”
It needs mention that it was by the Finance Act, 1996 (w.e.f 28.09.1996) that the amount was raised to Rupees Ten lakhs. Long ago, this amount stood at Rs.50,000/-.
Incidentally, even after fifteen years, this amount stands at Rs.10 lakhs. The point that I wish to highlight is that over the years, even the Joint Commissioner/Additional Commissioner have been given powers to adjudicate cases involving duty above Rs.5 lakhs and upto Rs.50 lakhs. [Circular 957/18/2011-CX.3 dated 25.10.2011 refers].
This would indirectly mean that even the Commissioner(Appeals) decides cases involving duty amounts up to Rs.50 lakhs.
And if this be so, doesn't it appear too “paltry” an amount that is required to be heard by a Single Member Bench of the CESTAT.
Section 35D(3) of the CEA, 1994, therefore, deservedly needs an amendment and so does Section 129C of the Customs Act, 1962.”