CBIC mulls higher monetary-limits for appeals in legacy matters to curb Govt. litigation

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CBIC invites zonal views from Principal Chief Commissioners & Chief Commissioners on proposition to raise the monetary limits at various appellate fora in legacy Central Excise & Service Tax matters, as a measure towards reduction of Govt. litigation; States that in a recent meeting, it has been decided to raise the monetary limits at CESTAT / HC / SC to Rs. 20 lakhs / Rs. 50 lakhs / Rs. 1 Cr respectively which would entail withdrawal of 2,768 appeals out of 15,085 pending as on March 31, 2018, a 1.45% impact on total revenue involved;

Apprises that a suggestion has also been received from highest levels for raising of limits before CESTAT / HC / SC to Rs. 50 lakhs / Rs. 1 Cr / Rs. 5 Cr respectively, resulting in higher revenue impact of 6.76% / 4.60% / 4.53% respectively;

However, points out inter alia that where Constitutional validity of the provisions is under challenge or where Notification / Circular / Instruction / Order is declared illegal or ultra vires, the matter can still be challenged as per conditions set out in Instruction dated August 17, 2011, which means that all cases would have be studied from this aspect even when they fall under monetary limits; Accordingly, requests Principal Chief Commissioners / Chief Commissioners to send their views to Nodal Principal Chief Commissioners / Chief Commissioners by July 4, 2018, who would then ensure that final report in the matter is provided by July 6.

CBIC INSTRUCTION NO.-F. No. 390/Misc/116/2017-JC dated June 25, 2018.