In a significant ruling the Jharkhand High Court observed that the determination of value of excisable goods for assessment falls within exclusive jurisdiction of the Supreme Court of India under Section 35L of the Central Excise Act, 1944.
The counsel for the assessee raised a preliminary objection with regard to maintainability of these two appeals and submits that the appeal filed by the Appellant Department under Section 35G of the Central Excise Act, 1944 is not maintainable before the High Court and the Court has no jurisdiction to entertain the same, inasmuch as, one of the question in the instant case relates to determination of value of the excisable goods for the purpose of assessment which falls within the exclusive jurisdiction of the Supreme Court under Section 35L of the Central Excise Act, 1944.
The counsel contended that an appeal against an order passed by the Tribunal under Section 35C of the Central Excise Act, 1944 where one of the issues involved relates to determination of valuation of excisable goods and/or rate of duty of excisable goods, amongst other things, for the purpose of assessment, the appeal would lie before the Hon’ble Supreme Court under Section 35L of the Central Excise Act. The jurisdiction of the High Court in such matters are specifically excluded under Section 35G and it falls within the exclusive jurisdiction of the Supreme Court under Section 35L of the Central Excise Act.
The counsel for the Revenue reiterated that none of the questions raised by the department in these Tax Appeals relate to determination of valuation of excisable goods and/or rate of duty of excisable goods. The counsel further submitted that neither the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata is related to valuation of goods/rate of duty nor the questions raised in appeal are related to them. Hence, there is no applicability of Section 35L (2) on this issue and that both these appeals are maintainable under Section 35-G and Section 35-L(b) is not applicable.
The Central Board of Indirect Taxes and Customs (formerly Central Board of Excise & Customs) vide its Circular No.390/Misc./100/2010-JC(9-2010) dated 22-09-2011 has instructed the department for filing appeal before the Supreme Court in cases relating to rate of duty or the value of goods for the purpose of assessment as statutorily prescribed.
A Division Bench comprising Justice Rongon Mukhopadhyay and Justice Deepak Roshan observed that “We are having no hesitation in holding both these appeals as not maintainable and the same would lie before the Hon’ble Apex Court under Section 35L of the Central Excise Act, inasmuch as, the jurisdiction of the High Court in such matters are specifically excluded under Section 35G and it falls within the exclusive jurisdiction of the Apex Court under Section 35L of the Central Excise Act.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
