Late filing: Apex court dismisses CBIC appeal against Balrampur Chini Mill

In what could be a wake up phone for the Central Board of Indirect Taxes…

In what could be a wake up phone for the Central Board of Indirect Taxes and Customs (CBIC) officials, the Supreme Court docket has dismissed an enchantment submitted by the board against Balrampur Chini Mill on account of delay in filing. The choice will come just two times soon after the CBIC experienced requested its officials to strictly comply with the timeline in filing appeals.

“There is delay of 426 times in filing the Distinctive Leave Petition. We do not uncover that there is ample lead to for the delay. For that reason, the Distinctive Leave Petition is dismissed as barred by limitations,” a division Bench of Justice Indira Banerjee and Justice Sanjeev Khanna mentioned in its purchase on a plea presented before admission.

Timeline for filing enchantment

Directions, issued in 2017, recommended 43 times for filing civil enchantment against the purchase of CESTAT (the Customs Excise and Assistance Tax Appellate Tribunal) and sixty times for filing the Distinctive Leave Petition (SLP) against the purchase of Substantial Courts, and complete a hundred and twenty times is recommended for filing enchantment in the Substantial Court docket.

Also browse: CBIC phone calls for ‘disciplinary’ motion in situation of enchantment dismissed on account of late filing

On January 19, the CBIC issued a round asking industry formations to strictly adhere to the element of limitation in filing appeals/ petitions before courts or tribunal. “The follow of filing Condonation of Delay Software in a mechanical manner, with out attributing cogent motives, if any, need to be discouraged,” it mentioned although including that supervising officers need to individually observe that the appeals/petitions are submitted on time in the desire of the tax division.

“Any enchantment/petition dismissed, exclusively on the grounds of limitation, may possibly be scrupulously examined and corrective steps may possibly be taken, together with disciplinary motion, where ever merited,” the round mentioned.

Distinctive leave petition

The existing particular leave petition was submitted against closing judgment and purchase dated April twelve, 2019 handed by the Lucknow Bench of Allahabad Substantial Court docket. The organization approached the Substantial Court docket hard the showcause recognize dated March 24, 2017 issued by the Assistant Commissioner, Central Excise and Assistance Divisions, Faizabad as very well as a round dated April twenty five, 2016, of CBIC thereby searching for to reverse the CENVAT credit score relating to ‘bagasse’.

For the duration of the approach of manufacture of sugar, squander in the variety of bagasse emerges, and the maker are unable to control the approach and reduce the emergence of bagasse. It was mentioned that bagasse is a non excisable superior for the intent of reversal of credit score of input and input expert services.

Soon after likely by means of arguments, a division Bench of the Substantial Court docket mentioned that in absence of bagasse being a created closing merchandise, the obligation of reversal of CENVAT credit score is not captivated. Appropriately, the showcause recognize was quashed. Aggrieved by the ruling, the CBIC resolved to move to the apex court but could not file the particular leave petition in time.