Revenue appeal involving Service Tax amount of Rs 5975 dismissed by CESTAT
WITH a view to reduce Government litigation, the CBEC has issued Instruction F.No. 390/Misc./163/2010-JC dated 17-8-2011 prescribing monetary limits for filing of appeals by the Department before CESTAT and High Courts. According to the same, the Department is advised that appeals in the Tribunal shall not be filed where the duty involved is Rs. 5 Lakh and below. The earlier instruction dated 20.10.2010 laid the limit of Rs.1 lakh. As usual, there are riders to this advice too.
Instructions notwithstanding, in the present case, Revenue has filed an appeal involving the Service Tax amount of Rs.5,975/-, and equal amount of penalty.
When the matter came up before the CESTAT, this is what the Single Member Bench held -
"...Since the amount involved in appeal is less than Rs.50,000/-, the appeal is not admitted.
2. Appeal dismissed."
Incidentally, in the case of Asiatic Enterprises , the Bench held -
“5. The comparative study of the above-referred provisions of both the Acts reveal that Sub-Section (7) of Section 86 is limited in respect of exercising power by the Appellate Tribunal in hearing the appeals and making Orders under the Central Excise Act, 1944 and not in respect of admission of appeal. The Appellate Tribunal acquires powers to hear the appeals and make Orders under Section 35C of the Central Excise Act, 1944 and not under Section 35B of the said Act. The discretion vested with the Appellate Tribunal to refuse or admit an appeal where the value of the appeal is below Rs.50,000.00 (Rupees fifty thousand) under the second proviso to Section 35B(1) of the Central Excise Act, 1944, is not available to the Appellate Tribunal under Section 86(7) of the Finance Act, 1994 or any other provision of the said Act for refusing or admitting an appeal . No separate provision under the Finance Act, 1994 is incorporated for hearing appeals and making Orders by the Appellate Tribunal, as provided under Section 35C of the Central Excise Act, 1944. It is seen that Section 86(7) similar to the provisions of Section 35C of the Central Excise Act, 1944 and not Section 35B, as such, the second proviso to Section 35B cannot be pressed into service under the Finance Act, 1994....”
(See )