Threshold for service tax, custom case appeals raised

In a move to reduce litigation from indirect tax administration, the government on Thursday raised the threshold limit for filing appeals before the Customs Excise and Service Tax Appellate Tribunal (CESTAT) and high courts to Rs.10 lakh and Rs.15 lakh respectively.

"A slew of measures were taken to enable effective and speedy dispute resolution and to facilitate the trade and industry. The threshold limit below which appeals are not to be filed by the department in CESTAT (tribunal) and high courts has been raised to Rs.10 lakh and Rs.15 lakh respectively," said a finance ministry statement.

It also said there will be withdrawal of all cases in high courts and CESTAT where there are precedent Supreme Court decisions against which no review is contemplated.

Besides, pre-show cause notice consultation at the level of principal commissioner and commissioner has been made mandatory in all cases where duty involved is above Rs.50 lakh.

The statement said zonal chief commissioners and principal commissioners have been directed to hold monthly, or bi-monthly, meetings with all adjudicating and appellate authorities in their respective zone and advise them on how to pass proper orders.

"Persistent ignoring of such advice would render the officer concerned liable to action," it said.