(Per : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. All these appeals have been filed by the Department and they arise out of common judgment of the Customs, Excise & Service Tax Appellate Tribunal (“the Tribunal” for short) dated 29.9.2010. The issues are also common and pertain to refund claims made by the respective respondent and allowed by the Tribunal.
2. While these appeals were taken up for hearing, learned counsel for the respondent raised objection about the maintainability of these appeals on the ground that each appeal involves revenue effect which is less than the threshold limit provided by the C.B.E.C. in its circular dated 20th October, 2010 for filing appeals before the High Court.
3. We may notice that by issuing such instructions, the C.B.E.C. provided for certain directives for the Department to prefer appeals before the Tribunals, High Courts and Supreme Court, essentially to reduce the number of small appeals and to filter conditions of frivolous appeals, minimum tax effect was prescribed below which, it would not be open for the Department to file appeal to the High Court. Paragraph 5 of such instructions provided for the limits. Paragraph 6 thereof provided for exceptions where despite low tax effect, appeal could be presented. Paragraphs 5 and 6 of such instructions read as under :
“[5] The Board has decided that appeals in the Tribunal shall not be filed where the duty involved or the total revenue including the fine and penalty is Rs.1 lakh and below. Similarly in the case of High Courts, appeals should not be filed in cases where the duty involved or total revenue including fine or penalty is Rs.2 lakhs and below. While deciding the thresholds mentioned above, the duty involved shall be the decisive element. For example, in a case involving duty of Rs.1 lakh with mandatory penalty of Rs.1 lakh besides any other penalty imposed under the relevant provisions of Law, no appeal shall henceforth be filed in the Tribunal as the duty involved is within the monetary limit of Rs.1 lakh. Similarly, if the duty involved in a case is Rs.2 lakhs with equal mandatory penalty and any other penalty imposed under the Law in force at the relevant time, no appeal shall be filed before the High Court.
[6] Adverse judgments relating to the following should be contested irrespective of the amount involved :
a) Where the constitutional validity of the provisions of an Act or Rule is under challenge.
b) Where notification/instruction/order or Circular has been held illegal or ultra vires.
c) Where audit objection on the issue involved in a case has been accepted by the Department.”
4. Learned counsel for the Department was unable to controvert the contention of the counsel for the respondents that in each case, the revenue effect involved was less than Rs.2 lakhs.
5. That being the position, all these appeals are dismissed as involving tax effect lesser than the limit prescribed by the C.B.E.C. instruction dated 20th October, 2010.
6. We clarify that we have not examined the merits of the issues presented before us.
[AKIL KURESHI, J.] [HARSHA DEVANI, J.] parmar*