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2025 Supreme(Sikk) 52
HIGH COURT OF SIKKIM : GANGTOK
Biswanath Somadder, C.J., Meenakshi Madan Rai, J.
Commissioner Of Central Excise, Customs And Service Tax, Siliguri - Appellant
Versus
M/S Zydus Healthcare - Respondent
TAX APP. No. 03 of 2024
Decided On : 24-04-2025
Important Points
Subject
Taxation Law - Central Excise
Act Referred
Headnote
Facts of the case:
The appellant challenged the final order passed by the appellate tribunal which allowed a special rate of value addition based on the cost of raw materials and inventory reflected in the audited financial statement. The appellant contended that the tribunal's observation regarding the special rate of value addition was incorrect in law.
Findings of Court:
The court held that since the matter pertains to the valuation of goods for assessment purposes, the High Court is barred from entertaining the appeal, as such issues fall under the exclusionary criteria explicitly stated in the statutory provision.
Issues: Whether the High Court has the jurisdiction to hear an appeal from the appellate tribunal when the dispute concerns the valuation of goods for assessment purposes.
Ratio Decidendi: In view of the statutory exclusion under Section 35G(1), which precludes High Court jurisdiction over determinations relating to the rate of duty or value of goods, the court lacks the authority to adjudicate the issue and directs the parties to seek redressal before the appropriate legal forum.
Result: Appeal disposed of; liberty granted to approach the apex court.
For the Appellant :Ms. Sangita Pradhan, Deputy Solicitor General of India with Ms. Sittal Balmiki and Ms. Natasha Pradhan, Advocates.
For the Respondent:Mr. Rahul Tangari, Ms. Gita Bista and Mr. Dipendra Chettri, Advocates.
| Table of Content |
|---|
| 1. appeal filed against cestat order concerning valuation. (Para 1) |
| 2. section 35g restricts high court appeals involving valuation. (Para 2 , 3) |
| 3. high court lacks jurisdiction to adjudicate valuation disputes. (Para 4 , 5 , 6) |
ORDER :
BISWANATH SOMADDER, C.J.
1.This statutory appeal has been filed by the Commissioner of Central Excise, Customs and Service Tax, Siliguri, against a final order dated 28th February, 2024, passed by the learned Customs, Excise and Service Tax Appellate Tribunal, Kolkata, in Excise Appeal No. 657 of 2010. The learned CESTAT has held therein that the respondent is entitled to a special rate of value addition @ 73.5%, which is based on the actual value of the cost of raw materials and inventory reflected in the audited financial statement. According to the appellant, this observation of the learned Tribunal that the respondent is entitled to special rate of value addition @ 73.5%, is incorrect and bad in law.
2. We now refer to section 35G(1) of the Central Excise Act, 1944, which reads as follows:-
“35G. Appeal to High Court. —(1) An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal on or after the 1st day of July, 2003 (not being an order relating, among other things, to the determination of any question having a relation to the rate of duty of excise or to the value of goods for the purposes of assessment), if the High Court is satisfied that the case involves a substantial question of law.”
3. A bare perusal of the above provision of law clearly reveals that no appeal shall lie before the High Court from any order passed by the learned Tribunal (on or after the 1st day of July, 2003) if it is an order which relates among other things to the determination of any question having a relation to the rate of duty of excise or to the value of goods for the purposes of assessment.
4. Since this matter relates to valuation, we are of the view that this High Court has no jurisdiction to entertain, try and determine the issue as sought to be raised by the Commissioner of Central Excise, Customs and Service Tax, Siliguri.
5. In such circumstances, we grant liberty to the Commissioner of Central Excise, Customs and Service Tax, Siliguri, to approach the Hon’ble Supreme Court of India for redressal of their grievances, if any, in accordance with law.
6. The Tax App. No. 03/2024, stands accordingly disposed of.
