Government ups threshold for appeals in service tax, customs cases

With an aim to reduce litigations from indirect taxes, the government has raised the threshold limit for filing appeals before Customs Excise and Service Tax Appellate Tribunal (CESTAT) and High Courts to Rs 10 lakh and Rs 15 lakh, respectively. Besides, there will be withdrawal of all cases in High Courts and CESTAT where there is precedent Supreme Court decision, against which no review contemplated.

A slew of measures were taken to enable effective and speedy dispute resolution and to facilitate the trade and industry. Finance Ministry said that the Central Board of Excise and Customs (CBEC) has taken a number of initiatives to facilitate trade and resolve disputes. The Finance Ministry further said that pre show cause notice consultation at the level of Principal Commissioner/ Commissioner has been made mandatory in all the cases where duty involved is above Rs 50 lakh.

Further, Zonal Chief Commissioners and Principal Commissioners have been directed to hold monthly or bi-monthly meetings with all the adjudicating and appellate authorities in their respective zone and also advice them on how to pass good adjudication/appellate orders. Besides, the training institute will impart intense training to train officers on the qualities of a good adjudication order, advocacy, and interpretation of statue as well as drafting of laws.

Customs Excise & Service Tax Appellate Tribunal (CESTAT) is an independent forum to hear appeals against orders and decisions passed by the Commissioners of Customs and Excise relating to service tax, customs and central excise.