Central Board of Excise & Custom has modified the rules of filing appeal in CESTAT , High Court and Supreme Court by issuing a fresh Instruction [F.NO.390/MISC./163/2010-JC], DATED 17-8-2011 which is effective from 01/09/2011
Sl. No. Appellate Forum Monetary limit
1. CESTAT Rs.5,00,000
2. HIGH COURTS Rs.10,00,000
3. SUPREME COURT Rs.25,00,000
The monetary limit shall be exclusively with respect to duty involvement and for computing the monetary limit the penalty and interest should not be counted.However, if the penalty itself is subject of dispute and the said penalty exceeds monetary limit, appeal will be filed.
The instruction also clarifies following doubts by departmental authorities
(a) Whether duty involved mentioned in the Instruction dated 20-10-2010 refers to duty outstanding to be collected or the total duty demanded for deciding the threshold limit prescribed therein.
In a case where a part of the duty demanded is not disputed and is paid and the outstanding duty under dispute is less than the monetary limit prescribed by the Board, no appeal shall be filed. In other words, monetary limit shall apply on the disputed duty and not on the total duty demanded in a case.
(b) Whether monetary limits would apply to cases of refund.
It is clarified that the monetary limits being prescribed by the Board would apply to cases of refund as well.
(c) Whether applications being filed by the Department before office of Joint Secretary (Revision Application) would also be covered under the stipulation of monetary limits.
The limit specified herein will not be applicable to application filed before the Joint Secretary (Revision Application).
(d) Whether exclusion of audit objections mentioned in para 6(c) of Instruction dated 20-10-2010 would cover internal audit objection cases also or whether they would be limited to cases of revenue audit alone.
The intention was to apply the exclusion clause mentioned at para 6(c) only to disputes arising out of revenue audit objections accepted by the Department. It has now been decided to delete the said exclusion clause (refer para 3 of this Instruction). Therefore, in all cases of audit objections accepted by the Department, while protective demands may continue to be issued but the same would be subjected to the monetary limits for filing appeal in the Tribunal, High Courts and the Supreme Court.