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Jharkhand High Court
Commissioner vs Shri Krishna Laxmi Steel Udyog (P) Ltd on 16 March, 2026
Author: Rajesh Shankar
Bench: Rajesh Shankar
( 2026:JHHC:6955-DB )
IN THE HIGH COURT OF JHARKHAND AT RANCHI
T.A. No. 1 of 2022
Commissioner, Central Goods, Service Tax & Central Excise, Jamshedpur,
having its office at GST Bhawan, Outer Circle Road, Bistupur, P.O. & P.S.-
Bistupur, District- Singhbhum East (formerly Commissioner of Central Excise
and Service Tax Jamshedpur, Division-III 143, New Baradwari, Sakchi, P.O.-
Jamshedpur, District- East Singhbhum).
.... .... Appellant
Versus
Shri Krishna Laxmi Steel Udyog (P) Ltd., having its office at NS-116, Phase-
VI, Adityapur Industrial Area, P.O. & P.S.- Adityapur, Jamshedpur, Jharkhand.
.... ... Respondent
With
T.A. No. 2 of 2022
Commissioner, Central Goods, Service Tax & Central Excise, Jamshedpur,
having its office at GST Bhawan, Outer Circle Road, Bistupur, P.O. & P.S.-
Bistupur, District- East Singhbhum (formally Commissioner of Central Excise
and Service Tax Jamshedpur, 143, New Baradwari, Sakchi, P.O. & P.S.-
Sakchi, Jamshedpur, District- East Singhbhum).
.... .... Appellant
Versus
Shree Krishna Laxmi Steel Udyog (P) Ltd., having its office at NS-116, Phase-
VI, Adityapur Industrial Area, P.O. & P.S.- Adityapur, Gamharia, P.O. & P.S.-
Gamharia, Jamshedpur, Jharkhand.
.... ... Respondent
With
T.A. No. 14 of 2023
Commissioner of Central Excise, Jamshedpur, at present, Outer Circle Road
(Kharkai Link Road), Bistupur, P.O.& P.S.- Bistupur, Jamshedpur, earlier-143,
New Baradwari, Sakchi, Jamshedpur, P.O.& P.S.- Sakchi, District- Singhbhum
(East), Jharkhand.
.... Appellant
Versus
M/s Duplex Light Engineering Works, Plot No. C-65, 2nd Phase, Adityapur
Industrial Area, Jamshedpur, P.O.& P.S.- Adityapur, District- Singhbhum East,
Jharkhand-832109.
.... Respondent
------
CORAM : HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE RAJESH SHANKAR
------
For the Appellants : Mr P.S.A. Pati, Sr. SC
Mr. Amit Kumar, Sr. SC
Mr. Anurag Vijay, Jr. SC
Mr. Vishwajeet Singh, Advocate
-----
05 /Dated: 16.03.2026
1. Heard learned counsel for the appellants.
( 2026:JHHC:6955-DB )
2. In all these appeals, tax effect is less than rupees two crores. However,
learned counsel for the appellants states that he has no instructions to
withdraw these appeals.
3. Further, Mr. Pati submits that the issue involved in these appeals relates
to the constitutional validity of Rule 8(3A) of the Central Excise Rules
2002 and, therefore, the matter would fall within the exception in
paragraph 2(a) of Instructions dated 02.11.2023.
4. Paragraph 2(a) of Instructions dated 02.11.2023 provides that adverse
judgments where the constitutional validity of the provisions of an Act
or Rule are under challenge, should be contested irrespective of the
amount involved.
5. In all these appeals, the issue of constitutional validity of Rule 8 (3A) of
the Central Excise Rules, 2022 cannot be said to be involved. This Rule
is already struck down as ultra virus by several High Courts, as was
admitted by the learned counsel for the appellants. The Tribunal has only
followed those judgments and proceeded on the premise that the Rule is
ultra virus. Besides, as quotes under the Act, we are doubtful, whether in
these appeals, we can even go into the issue of constitutional validity of
the Rule in question.
6. Even so-called substantial question of law proposed by the appellants
does not raise the issue of constitutional validity of Rule 8 (3A) of the
Central Excise Rules 2002.
7. Accordingly, we dispose of these appeals on the ground of low tax effect
by leaving the questions of law open. In terms of Instructions dated
02.11.2023, read with Instructions dated 06.08.2024, the Department is
( 2026:JHHC:6955-DB )
not expected to pursue appeals where tax effect is less than rupees two
crores.
(M.S. Sonak, C.J.)
(Rajesh Shankar, J.)
March 16, 2026
Ranjeet / R.Kr.
NAFR
Uploaded on 16.03.2026
