Commissioner Of Central G.S.T. & ... vs M/S. Singh & Sons Industries
2025 Latest Caselaw 7223 Jhar

Jharkhand High Court

Commissioner Of Central G.S.T. & ... vs M/S. Singh & Sons Industries on 27 November, 2025

Author: Rajesh Shankar

Bench: Rajesh Shankar

                                                                             2025:JHHC:35393-DB




                   IN THE HIGH COURT OF JHARKHAND AT RANCHI
                                Tax Appeal No. 2 of 2024
            Commissioner of Central G.S.T. & Central Excise, Jamshedpur, East
            Singhbhum                                            ..... Appellant
                                           Versus
            M/s. Singh & Sons Industries, Jamshedpur, East Singhbhum
                                                                 ..... Respondent
                                            -----

CORAM HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE RAJESH SHANKAR

-----

For the Appellant: Mr. Amit Kumar, Sr. S.C. (CGST) For the Respondent: Mr. Vikas Pandey, Advocate

-----

09/27.11.2025

1. The tax effect of the subject matter of this appeal is falling below the

threshold contained in the circular dated 06.08.2024 of the Central Board

of Indirect Taxes and Customs and therefore the same is required to be

withdrawn.

2. Learned counsel for the appellant submits that in terms of paragraph no.

3 of the aforesaid circular, the appeal has to be contested irrespective of

the amount involved as the Constitutional validity of the provisions of the

Act is under challenge. However, we find no merit in this contention giving

the fact that learned Division Bench of the Gujarat High Court vide its

judgment dated 27.11.2015 rendered in the case of 'Indsur Global Ltd.

Vs. Union of India & Others' reported in 2014 SCC OnLine Guj

14129 has struck down the condition as contained in sub-rule (3A) of

Rule 8 of the Central Excise Rules, 2002 for payment of duty without

utilising the Cenvat credit till an assessee pays the outstanding amount

including interest being unconstitutional.

3. Admittedly, it was the Union of India which was aggrieved by the said

judgment and had preferred Civil Appeal No. 6652 of 2018 (Union of India

& Ors. Vs. Indsur Global Ltd.). However, the said appeal based on the

2025:JHHC:35393-DB

earlier circular of the Central Board of Indirect Taxes and Customs dated

22.08.2019, was disposed of as not pressed as the tax effect of the

subject matter of the said appeal fell below the threshold contained in the

circular dated 22.08.2019.

4. Once there are circulars pari materia and only the threshold limit, which

was earlier 1 crore and now 2 crores, the respondent cannot be heard

complaining that the appeal needs to be contested on the ground that the

Constitutional validity of the provisions of the Act is under challenge.

Otherwise, they should not have withdrawn the appeal before the Hon'ble

Supreme Court knowing fully well that the provisions of the rules to the

extent above have already been held unconstitutional by learned Division

Bench of the Gujarat High Court. In addition thereto, it only needs to be

reiterated that the issue involved in the instant appeal is identical to the

one already decided by the learned Gujarat High Court in the case of

Indsur Global Ltd. (supra).

5. Accordingly, the present appeal is held to be not maintainable in terms of

the circular dated 06.08.2024 and the same is hereby dismissed.

6. Pending interlocutory application stands disposed of.

(TARLOK SINGH CHAUHAN, C.J.)

(RAJESH SHANKAR, J) 27th November, 2025 Satish/Vikas/ Uploaded on 28.11.2025