National litigation Policy - Applicable to appeals filed prior to issuance of CBEC instructions dated 20.10.2010 - In view of object behind Policy, court can give it retrospective effect: High Court
By TIOL News Service
CHENNAI, NOV 01, 2015: THIS is a revenue appeal against the order of the Tribunal setting aside the penalty imposed by the Commissioner under Section 84 of the Finance Act, 1994. The amount involved is Rs 1,49,170/-
The respondent assessee raised a preliminary objection on maintainability of the appeal on account of the National litigation Policy and the CBEC instructions dated 20.10.2010 in F.No.390/Misc./163/2010-JC as the amount falls below the monetary limit.
It was contended by the revenue that the appeal was admitted on 25.3.2010 and the National Litigation Policy of the Government was issued by the Ministry of Finance, Department of Revenue, Central Board of Excise & Customs vide Instructions dated 20.10.2010 in F.No.390/Misc./163/2010-JC and, therefore, there was no bar on the appellant/Department in filing the appeal.
After hearing both sides, the High Court held:
+ It is to be pointed out that the main reason for bringing into effect the National Litigation Policy is to reduce Government litigation so that the Government ceases to be a compulsive litigant. The purpose underlying this Policy is to ensure that valuable time of the Courts is spent in resolving pending cases and in bringing down the average pendency time in the Courts and to achieve this, the Government should become an 'efficient' and 'responsible' litigant. With the above object in mind, the National Litigation Policy was formulated and issued. This Court is also conscious of the fact that the appeal has been filed well before the issuance of the National Litigation Policy. However, the said aspect does not preclude the Court from giving retrospective effect to the Policy, in certain circumstances, keeping in mind the laudable object behind its issuance. This Court is also conscious of the necessity to bring down the average pendency time in the Courts so that precious judicial time does not get wasted.
+ The Court is not inclined to entertain this appeal in view of the preliminary objection made by the respondent that the monetary limit to prefer an appeal is pegged at Rs.2,00,000/- by the litigation policy of the Government issued by the Ministry of Finance, Department of Revenue, Central Board of Excise & Customs vide Instructions dated 20.10.2010 in F.No.390/Misc./163/2010-JC.
(See 2015-TIOL-2512-HC-MAD-ST)