The Karnataka High Court ruled that the Departmental Appeal before the High Court if monetary limit involved is less than Rs.1 crore.
The respondent authority has argued that the monetary limit involved is less than Rs.1 crore and in the light of the circular issued by the Central Board of Direct Taxes dated August 22, 2019, the appeal itself is not maintainable. He has further stated that the circular dated August 22, 2019, is an extension of the earlier circular dated August 17, 2011, wherein, the limit was Rs.10 lakh.
The respondent authority has stated in the present appeal that the monetary limit is approximately Rs.26 lakh and the constitutional validity of any provisions of the Act or the Rule is not under challenge.
On the other hand, Sri Vikram Aditya Huilgol, learned counsel appearing for the appellant has argued before this Court that the judgment delivered by the Tribunal is based upon a judgment delivered by the High Court of Gujarat in the case of Indsur Global Ltd. VS. Union of India, wherein, it has held that the payment of excise duty by utilizing the CENVAT credit is not in violation of the Rule 8(3A) of the Central Excise Rules, 2002. It is further stated that the aforesaid judgment has been stayed by the Hon’ble Supreme Court and stay is continuing. Therefore, the matter deserves to be remanded to the Tribunal or may be deferred.
The division bench of Justices Satish Chandra Sharma and S. Vishvajith Shetty opined that there is no challenge to the constitutional validity of any provision of the Act or the Rule and therefore, as the monetary limit involved is less than Rs.1 crore, the appeal is not maintainable.