High Courts Can't Entertain Appeals On Determination Of Excise Duty Rate Or Value Of Goods For Assessment: Rajasthan High court

The Rajasthan High Court, Jaipur Bench, has held that an appeal would lie to the High Court if the High Court is satisfied that the case involves a substantial question of law; however, an appeal would not lie if the same pertains to the determination of any question having relation to the rate of duty of excise or to the value of goods for purposes of assessment.

The bench of Justice Pankaj Bhandari and Justice Shubha Mehta has observed that SSI exemption for payment of central excise duty has been granted to the respondent. If this exemption is withdrawn, excise duty would become leviable, and consequently, it would be an order relating, among other things, to the determination of any question having a relation to the rate of excise duty. If the exemption is withdrawn, the goods will be valued for the purpose of assessment, and thus, they would fall within the exception as provided under Clause 1 of Section 35G of the Central Excise Act, 1944.

The appellant/department has appealed under Section 35G of the Central Excise Act, 1944, aggrieved by the order passed by the Excise and Service Tax Appellate Tribunal.

The respondent or assessee has raised an objection as to the maintainability of the appeal under Section 35G of the Central Excise Act, 1944. If the SSI exemption is withdrawn, the excise duty would become leviable; therefore, the same would fall within the exception as provided under Section 35G.

The appellant or department contended that SSI exemption is available only when turnover is less than Rs. 1 crore. The assessee has three undertakings; therefore, they were not entitled to exemptions, and SSI exemptions were withdrawn by the department. A bar as provided under Clause (1) of Section 35G would not apply, and the High Court would have jurisdiction to entertain the appeal.

The court held that there being a specific bar on entertaining an appeal, if the question pertains to the rate of duty of excise or the value of goods for the purpose of assessment, the present appeal is not maintainable before the High Court.

“We are not inclined to entertain the present appeal on the ground of lack of jurisdiction, and the same is accordingly dismissed as not maintainable,” the court said.

Counsel For Appellant: Kinshuk Jain

Counsel For Respondent: Daksh Pareek

Case Title: Commissioner of Central Goods And Service Tax Versus Jain Poles Industries

Case No.: D.B. Excise Appeal (EXCIA) No. 75/2018

Click Here To Read The Order