In the recent case, the High Court of Calcutta disposed of the appeal on the grounds of the monetary limit, as stipulated by the Central Board of Direct Taxes (CBDT) Circular. The Court concluded that the amount involved did not meet the threshold required for the Department to appeal to this Court.
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Alishan Veneer & Plywood Pvt Ltd.,the respondent-assessee, the revenue appellant filed an appeal against the order dated June 16,2023 passed by the Custom, Excise and Service Tax Appellate Tribunal (CESTAT).
The revenue appellant raised the following questions for review. Firstly, whether the Tribunal properly considered the impact of the Hon’ble Supreme Court’s interim stay order on the Gujarat High Court’s judgment in Indsur Global Ltd. vs. UOI (2011) and whether the Commissioner (Appeal) was wrong to rely on this stayed judgment in Order-in-Appeal No. 26/HWH/CE/2019-20.
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Secondly, whether the Tribunal failed to consider the Board’s Instruction F.No. 390/Misc./163.2010-JC, dated 17-08-2011, which stipulates that cases challenging the constitutional validity of an Act or Rule should be contested regardless of the amount involved.
Mr. Kaushik De, the counsel appeared for the appellant and Mr. Atish Dipankar Ray, the counsel appeared for the respondent.
The court, after reviewing the Order-in-Original, contended that the monetary limit in this case does not allow the Department to appeal to this Court, according to the Central Board Of direct Taxes (CBDT) Circular.
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According to the Budget 2024-25, the government proposes increasing the monetary limits for filing tax appeals to address the backlog of cases. The new limits will be ₹60 lakh for Tax Tribunals, ₹2 crore for High Courts, and ₹5 crore for the Supreme Court, up from the previous thresholds of ₹50 lakh, ₹1 crore, and ₹2 crore, respectively. This adjustment applies to appeals related to direct taxes, excise, and service tax.
A coram comprising Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya disposed of the appeal on the grounds of monetary limit. Consequently, the substantial questions of law remain unresolved.
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