Regarding filing of Civil Appeals against CEGAT orders involving rate of
duty and valuation -Review/ Scrutiny in CBEC - Instructions
Circular
No. 313
dated 6th May 1997
An
appeal lies to the Supreme Court under section 13CE of the C.A. 1962/ Section
35L of the Central Excise Act against the CEGAT order relating to rate of duty
and valuation for the purpose of assessment. The appeal is required to be filed
by the jurisdictional Commissioner within 60-days from the date of receipt of
CEGAT order in the Commissionerate. Prior to 1995, cases relating to rate of
duty and valuation were centralised in the Special Benches of CEGAT at Delhi.
After the amendment in the Acts in 1995 such cases are to be disposed of by the
Regional Benches also.
2.
Till now, the practice had been to scrutinise in the Board Office each
and every CEGAT order relating to rate of duty and valuation (for the purpose of
assessment) after obtaining the comments of CCE/ CDR. With the decentralisation
of work relating to such cases in CEGAT as well as increased disposals by CEGAT,
the practice of suo moto scrutiny of all such CEGAT orders by the Board
has become somewhat unmanageable and impracticable.
3.
The matter has been examined in the Board Office. After carefully
considering all aspects as well as Board's earlier instructions issued vide
D.O.F. No. 390/185/91-JC dated 29.10.94, the Board has decided as follows:
(a)
The Board will not henceforth suo moto scrutinise the CEGAT
orders. The jurisdictional Commissioner would be primarily responsible for
examining each and every very order for filing civil appeal or Reference
Application, as the case may be. If the Commissioner feels that a civil appeal
under section 35L/ 130E is to be filed against a particular CEGAT order relating
to rate of duty and valuation (for the purpose of assessment) he should submit a
detailed proposal giving grounds for appeal and other necessary details to the
Board, (by name to Commissioner (R)/ Director (JC) within 10 days from the date
of receipt of the certified copy of the CEGAT order in his office. The proposal
should be sent in the prescribed proforma along with (i) copy of CEGAT order
indicating date of receipt by the Commissioner; (ii) copy of order in original/
order in appeal passed by the Commissioner; (iii) copies of SCNs; (iv) Board's
instructions, if any; (v) copies of relied upon decisions in the CEGAT order;
(vi) any other relevant document.
(b)
It must be ensured in the Commissionerate that every CEGAT order whether
in favour or against the revenue is examined and reviewed upto the level of
Commissioner; within the given time, for acceptance or otherwise.
(c)
As soon as the proposal is received in the Board Office the CDR would be
asked to send the RMS/ Paper Book. The Board will examine only such proposals
for taking decisions to file appeal in the Supreme Court.
(d)
The present practice of telex reports from Commissioners regarding CEGAT
orders should be discontinued.
(e)
If the CDR feels that a particular CEGAT order is not correct and
acceptable he should immediately send his report to jurisdictional Commissioner
detailing out the grounds and his views. A copy of this communication along with
Paper Book should be sent by CDR to Commissioner (R) in CBEC. CDR should take
this action within 10 days of the passing of the CEGAT order in question.
(f)
The Chief Commissioner would at random examine the correctness or
otherwise of at least 10% of the CEGAT orders which are against the Department
and which have been accepted by the Commissioner. He would send quarterly report
in this regard to Member (L & J) in CBEC.
(g)
The CDR would collect all the copies of CEGAT orders relating to rate of
duty and valuation meant for CBEC and would send them on weekly basis to the
Judicial Cell by name to Director (JC) in CBEC.
5.
Receipt of these instructions may be acknowledged forthwith.
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