Revenue appeals dismissed as non-maintainable under CBIC circular setting Rs.50 lakh threshold under Section 131BA

CESTAT Chandigarh dismissed 13 appeals filed by the revenue department as non-maintainable due to CBIC circular dated 02.11.2023 prescribing monetary threshold of Rs.50 lakhs for filing appeals before CESTAT. The circular, issued under Section 131BA of Customs Act 1962, mandates withdrawal of pending appeals below this limit. Since duty amounts in all appeals were below Rs.50 lakhs threshold, the tribunal held appeals were not maintainable per Board instructions and dismissed them while leaving questions of law open.

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Issues Involved:
1. Validity of enhanced value assessment by the department.
2. Applicability of CBIC's monetary limit instructions for filing appeals.

Summary:

Issue 1: Validity of Enhanced Value Assessment
The respondent, M/s Hanuman Prasad & Sons, imported Polyester Knitted Fabrics and self-assessed duty on the declared transaction value. The department reassessed the goods at a higher value, which the importer initially accepted without protest. However, the importer later challenged the assessment, and the Commissioner of Customs (Appeals) set aside the reassessment, restoring the self-assessment. The Commissioner (Appeals) based the decision on several grounds:
- Acceptance of enhanced value does not preclude challenging the enhancement, citing the Apex Court decision in Dunlop India Ltd.
- None of the grounds u/r 12 of CVR 2007 existed to merit rejection of the declared value.
- The assessment was arbitrary and illegal for not adhering to Section 14 of the Act read with CVR 2007, referencing the Apex Court decision in South India Television (P) Ltd.
- The reliance on NIDB data was incorrect as it did not meet the criteria u/r 5 of CVR 2007.
- For applying Rules 5 & 6, adjustments must be based on demonstrated evidence.

Issue 2: Applicability of CBIC's Monetary Limit Instructions
The respondent argued that the appeals are not maintainable due to the monetary threshold limits set by the Ministry of Finance, CBIC, which prohibit filing appeals below Rs. 50 lakhs. The respondent cited various instructions and circulars issued by the Ministry to reduce litigation, including the latest instructions dated 02.11.2023. The respondent also referenced multiple judicial decisions supporting the binding nature of these instructions on the department.

The department contended that the appeals fall under exceptions to the monetary limit instructions and justified the filing based on an interim order in a similar case. However, the Tribunal found that the appeals do not fall under the exceptions and are below the monetary limit prescribed in the instructions dated 02.11.2023.

Conclusion:
The Tribunal dismissed all 13 appeals filed by the department, citing the binding nature of the CBIC's instructions and the consistent judicial stance on dismissing appeals below the prescribed monetary limits. The Tribunal left the question of law open.

(Order pronounced in the open court on 22.05.2024)

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