COMMISSIONER OF CUSTOMS vs. M/S AMIRA FOODS (INDIA) LTD

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CUSAP/7/2018HC Punjab & HaryanaPHHC01079922201822 January 2019Author: MR. JUSTICE AJAY KUMAR MITTAL,MRS. JUSTICE MANJARI NEHRU KAUL2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The primary reason for dismissal was the monetary limit stipulated in the CBIC instructions dated July 11, 2018, which fixed the threshold for filing appeals in High Courts at ₹50,00,000. Since the tax effect in the present appeal was ₹12,00,000, which was below the prescribed limit, the appeal was dismissed in accordance with these instructions. The Court also referenced the Supreme Court's decision in Commissioner of Income tax Vs. Dhanalekshmi Bank Ltd., where appeals with low tax effects were dismissed without adjudicating on the merits. The High Court clarified that the dismissal of the appeal would not be construed as an affirmation of the Tribunal's order on merits, and the legal issue raised by the Revenue was left open to be adjudicated in an appropriate future case. No specific issue was left undecided; rather, the appeal was disposed of on a procedural/administrative ground.

What were the facts?

The Revenue, Commissioner of Customs, filed an appeal under Section 130 of the Customs Act, 1962, challenging an order dated July 11, 2016, passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT). The appeal was filed against M/s Amira Foods (India) Ltd. The tax effect involved in the appeal was ₹12,00,000, comprising a redemption fine of ₹8,00,000 and a penalty of ₹4,00,000. The appeal was filed after a delay of 94 days, for which an application for condonation was allowed. The Revenue's appeal was filed subsequent to instructions issued by the Ministry of Finance on July 11, 2018, which fixed a monetary limit of ₹50,00,000 for filing appeals in High Courts and mandated withdrawal of appeals below this limit.

What were the issues?

1. Whether the appeal, with a tax effect of ₹12,00,000, is maintainable before the High Court in light of the Central Board of Indirect Taxes & Customs (CBIC) instructions dated July 11, 2018, which set a monetary limit of ₹50,00,000 for filing appeals in High Courts and directed withdrawal of appeals below this limit? Assessee's Contention: The assessee did not present any arguments as the appeal was dismissed on the grounds of the monetary limit. The judgment does not record any arguments from the assessee. Revenue's Contention: The Revenue relied on the instructions issued by the Ministry of Finance, Department of Revenue, CBIC, dated July 11, 2018, which stipulated a monetary limit of ₹50,00,000 for filing appeals in High Courts and directed the withdrawal of pending appeals where the monetary limit was less. The Revenue also referred to the Supreme Court's decision in Commissioner of Income Tax Vs. Dhanalekshmi Bank Ltd., [2015] 373 ITR 526 (SC), which dismissed an appeal with a low tax effect without going into the merits.

Which sections of the Income-tax Act were involved?

Section 130

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Decided on : 22.01.2019 Commissioner of Customs . . . Appellant(s) Versus M/s Amira Foods (India) Ltd. . . . Respondent(s) CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MRS. JUSTICE MANJARI NEHRU KAUL PRESENT: Mr. Anshuman Chopra, Advocate for the appellant(s)-revenue. Mr. Amrinder Singh, Advocate for the respondent(s)-assessee. **** AJAY KUMAR MITTAL, J. (Oral) CM No. 6674-CII of 2018 This is an application under Section 151 CPC, seeking condonation of delay of 94 days in re-filing the appeal. Notice of this application was issued. After hearing learned counsel for the parties, perusing the averments made in the application, which is supported by an affidavit, the same is allowed and the delay of 94 days in re-filing the appeal is hereby condoned. CM stands disposed of accordingly. CM No. 6675-CII of 2018 Allowed as prayed for. CUSAP No. 7 of 2018 The present appeal filed under Section 130 of the Customs Act, 1962, laying the challenge to the order dated 11th July, 2016 (Annexure A-1), passed by the Customs, Excise & Service Tax Appellate Tribunal, Sector 17, Chandigarh in Appeal No. C/604/2010. 2. A perusal of the case file shows that the tax effect involved in the present appeal is ` 12,00,000/- [i.e. ` 8,00,000/- (redumption fine) + ` 4,00,000/- JAWALA RAM 2019.02.04 13:39 I attest to the accuracy and authenticity of this document Chandigarh - 2 - (penalty)]. Further, in view of the instructions issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs (Judicial Cell), dated 11th July, 2018, whereby, the monetary limit has been fixed for filing the appeals in the High Courts at `50,00,000/-. In Para No.3 of the aforesaid instructions, it has also been stated that wherever, monetary limit is less, the appeal shall be withdrawn and the said instruction is applicable to all the pending appeals in the High Courts.

3.

The Apex Court in 'Commissioner of Income tax Vs. Dhanalekshmi Bank Ltd., [2015] 373 ITR 526 (SC)', where the tax effect was low, had dismissed

the appeal without going into the merits of the appeal leaving the question of law open.

4.

In view of the aforesaid, the present appeal is dismissed. It is, however, clarified that dismissal of the appeal shall not be taken to be affirmation of order of the Tribunal on merits. Further, the legal issue as claimed by the revenue is being left open to be adjudicated in an appropriate case. (AJAY KUMAR MITTAL) JUDGE January 22, 2019 J.Ram (MANJARI NEHRU KAUL) JUDGE Whether speaking/reasoned: Yes/No Whether Reportable: Yes/No JAWALA RAM 2019.02.04 13:39 I attest to the accuracy and authenticity of this document Chandigarh

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