Professional Update

(Goods and Service Tax Case laws)

                        D.B. Civil Writ 35686/2023 (Del HC)

Commissioner CGST Delhi, South.

vs

Nitin Industries (Trade Name).

Facts

Appellant has assailed the order dated 24.11.2022 whereby the custom excise and central tax tribunal has allowed the appeal filed by the respondent for granting the refund of the GST u/s 54 read with section 142(3) of the CGST Act. The quantum of the GST refund is 38 lacs. The objection raised by the respondent that the CBIC circular has raised the limit of appeal by the department to 1 crores. Therefore, the appeal is barred by the limitation of the low tax effect.  

Issue

Whether the GST department could file an appeal before the high court wherein the tax effect related to the refund of GST is below 1 crore ?

Held.

Delhi HC held the CBIC circular mandates the Department appeal is to be filed in the High court if the tax effect is more than 1 crores. The CBIC issued the instruction dated 22.08.2019 which raised the limit of the earlier instructions issued by the CBIC. In the facts of the present case, there was no challenge as to the vires of the provisions and therefore, the appeal is barred by limitation on account of low tax effect.

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CA Manoj Garg

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