Customs, Excise And Service Tax Appellate Tribunal (CESTAT)

Introduction

The Customs Excise and Service Tax Appellate Tribunal (CESTAT) is an Indian quasi-judicial authority constituted originally as Customs, Excise & Gold (Control) Appellate Tribunal (CEGAT) on October 11, 1982 under section 129 of the Customs Act, 1962. It was renamed CESTAT on 14 May 2003. Although it has been created under the Customs Act, it is mandated to decide appeals under the following four Acts - Customs Act,1962, Central Excise Act, 1944, Finance Act, 1994 and Customs Tariff Act, 1975. However, CESTAT holds the discretion to refuse admission of an appeal for orders where the fine or penalty amount determined doesn't exceed Two Lakhs rupees under Section 129DD of the Customs Act 1962.

Legislative Framework

Constituting Act

The Customs Excise and Service Tax Appellate Tribunal was constituted under section 129 of the Customs Act, 1962. The Central Government is authorized to form an Appellate Tribunal, comprising a suitable number of judicial and technical members, deemed necessary for the execution of powers and duties bestowed upon the Appellate Tribunal under this Act. The appeals under the following provisions of the four Acts - Customs Act,1962, Central Excise Act, 1944, Finance Act, 1994 and Customs Tariff Act, 1975 are entertained by CESTAT.

Customs Act,1962

CESTAT is mandated to hear appeals against orders passed by the Commissioners or Commissioners (Appeals) under Section 129A of the Customs Act,1962. Appeals can be filed in FORM CA 3 with enclosures. Revenue appeal under section 129A(2) or 129D(4) can be filed in FORM CA 5. Cross objections can be filed in FORM CA 4.

Central Excise Act, 1944

CESTAT is the ‘Appellate Tribunal’ [Section 2(aa)] and is mandated [Section 35B] to hear appeals against orders passed by the Commissioners and Commissioners (Appeals). Appeals can be filed in FORM EA 3 with enclosures. Revenue appeal under section 35B(2) or 35B(1) can be filed in FORM EA 5. Cross objections can be filed in FORM EA 4.

Finance Act, 1994

CESTAT is the ‘Appellate Tribunal’ [Section 65B(10)] and is mandated [Section 86] to hear appeals against orders passed by the Commissioners and Commissioners (Appeals) in matters related to Service Tax. Appeals can be filed in FORM ST 5 with enclosures. Revenue appeal under section 86(2) or 86(2A) can be filed in FORM ST 7. Cross objections can be filed in FORM ST 6.

Customs Tariff Act, 1975

Certain duties such as anti-dumping duty, safeguard duty or countervailing duty can be levied under the Customs Tariff Act, 1975 based on an objective determination and review by the Government. An appeal against the order of determination or review thereof also lies with CESTAT as per Section 9C of that Act. Appeals can be filed in the Proforma of memorandum of appeal with enclosures.

The following is a table of various legislative frameworks governing the functioning of CESTAT -

Sr. No.	Section/Rules/Notification/Circular/Instructions	Subject
1	Section 129 of the CA, 1962	Provides for constitution of the Appellate Tribunal
2	Section 129 A of CA, 1962	Provides mechanism for filing appeal against the Orders of Principal Commissioner/Commissioner/ADG (Adjudication) DRI or Commissioner (Appeals)
3	Section 129B of CA, 1962	Lays down provisions providing for following the principles of natural justice, timeline for deciding appeals, and rectification of mistakes by Tribunal while passing order.
4	Section 129C of CA, 1962	Provides various procedures to be followed by CESTAT.
5	Section 35 B of the CEA Act, 1944	Provides mechanism for filing appeal against the Orders of Principal Commissioner/ Commissioner/ ADG (Adjudication) DGCEI or Commissioner (Appeals)
6	Section 35C of the CEA, 1944	Lays down provisions providing for following the principles of natural justice, timeline for deciding appeals, and rectification of mistakes by Tribunal while passing order.
7	Section 35D of the CEA, 1944	Provides various procedures to be followed by CESTAT.
8	Section 86 of FA, 1994	Provides for filing of Appeal before CESTAT.
9	Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982	Provide various procedures to be followed at CESTAT.
10	Central Excise (Appeals) Rules, 2001	Prescribe various procedures to be followed at Appellate stages and the Forms in which Appeals/Cross Objections are to be filed.
11	Customs (Appeals) Rules, 1982	Filing of Appeal before CESTAT-P.
12	Rule 9 of Service Tax Filing of Appeal before CESTAT-P Rules, 1994	Relevant CBEC Circulars/Instructions
13	Circular No. 935/25/2010-CX, dated 21.09.2010	Measures to streamline the processing of departmental litigation before the Courts and Tribunal
14	Instruction issued vide F. No. 390/Misc./100 /2010-JC, dated 22.09.2011	Filing of appeal in the wrong forum in matters relating to valuation or determination of rate of duty.

Governance Structure

The CESTAT comprises a Principal Bench at Delhi and 8 regional benches at Mumbai, Kolkata, Chennai, Bangalore (established in 14 December 2000), Ahmedabad (established in 3 March 2006)), Allahabad (established in 1 September 2015), Chandigarh (established in 1 December 2015) and Hyderabad (established in 14 December 2015). Delhi Bench is headed by a President appointed by the Central Government. There is provision for a Senior Vice-President and Vice-Presidents, besides Judicial Members and Technical Members. The work of the Tribunal has been distributed amongst various Zonal / Regional Benches. Each bench of the CESTAT has at least one judicial and one technical member. There are 16 judicial and 16 technical members overall. Apart from this, there is also a Registrar sitting at the Principal Delhi Bench. There are Deputy or Assistant Registrars at the regional benches. Qualifications, appointment, tenure, and selection are according to The Tribunals Reforms Act, 2021 and The Tribunal (Conditions of Service) Rules, 2021.

Qualification

President: A person cannot be appointed as a President unless -

• (i) he is, or has been, a Judge of a High Court and who has completed not less than seven years of service as a Judge in a High Court; or
• (ii) he is a member of the Appellate Tribunal.

Judicial Member: A person cannot be appointed as a Judicial Member unless -

• (i) he has, for a combined period of ten years, been a District Judge and Additional District Judge; or
• (ii) he has been a member of the Indian Legal Service with ten years of experience in litigation and has held a post of Additional Secretary or any equivalent or higher post for two years; or
• (iii) he has been an advocate for ten years with substantial experience in litigation under indirect tax laws in Customs, Excise and Service Tax Appellate Tribunal, High Court or Supreme Court.

Technical Member: A person cannot be appointed as a Technical Member unless -

• He has been a member of the Indian Revenue Service (Customs and Central Excise Service Group 'A') and has held the post of Principal Commissioner of Customs or Central Excise or any equivalent or higher post and has performed judicial, quasi-judicial or adjudicating function for three years.

Appointment of Members

The Chairperson and the Member of a Tribunal shall be appointed by the Central Government on the recommendation of a Search-cum-Selection Committee. The Search-cum-Selection Committee tasked with appointing the President, Judicial Members, and Technical Members for the CESTAT is composed of distinguished individuals. Chaired by either the Chief Justice of India or a Judge of the Supreme Court nominated by the Chief Justice, the committee ensures rigorous evaluation and selection processes. Depending on the position being filled, the Outgoing President of CESTAT or the incumbent President may serve as a member of the committee. Additionally, the committee includes the Secretary to the Government of India from the Ministry of Finance, specifically from the Department of Revenue, and the Secretary to the Government of India from the Ministry of Personnel, Public Grievances and Pensions, specifically from the Department of Personnel and Training, as members. Together, these members form a comprehensive panel tasked with selecting the President and Members for CESTAT, ensuring a thorough and effective evaluation process.

Tenure

The tenure of the officials of CESTAT are given under the Section 9 the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2020. The term of the President is three years or till 67 years of age whichever is earlier.  The term of the Judicial and Technical members is three years or till 62 years of age whichever is earlier.  

Salary

The salaries of the officials of CESTAT are given under the Section 11 of the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2020. The President earns a salary of Rs. 2,50,000 and the Members receive a salary of Rs. 2,25,000.

Benches and their Jurisdiction

There is one Principal Bench at Delhi and 8 regional benches. The CESTAT has - single, division and large - types of benches depending upon the matter of adjudication. Apart from these, there is a specialised Anti-Dumping Bench dealing with anti-dumping cases.

The below is a table stating about the jurisdiction of the 9 benches of CESTAT -

Sr. No.	Title of the Bench	Location	Jurisdiction
1	North Zonal Bench	New Delhi	States of Madhya Pradesh, Chhattisgarh, Uttarakhand, Rajasthan, and NCR of Delhi
2	Western Zonal Bench (Mumbai)	Mumbai	States of Maharashtra & Goa
3	West Zonal Bench (Ahmedabad)	Ahmedabad	State of Gujarat and Union Territories of Dadra & Nagar Haveli and Daman & Diu
4	South Zonal Bench (Chennai)	Chennai	State of Tamil Nadu and Union Territory of Pondicherry except Yanam Commune
5	South Zonal Bench (Bengaluru)	Bengaluru	State of Karnataka, Kerala and UT of Lakshadweep.
6	East Zonal Bench	Kolkata	States of Bihar, Jharkhand, Orissa, West Bengal, Assam, Manipur, Meghalaya, Nagaland, Sikkim, Tripura, Arunachal Pradesh, Mizoram and Union Territory of Andaman & Nicobar Islands.
7	Regional Bench, Chandigarh	Chandigarh	Union Territory of Chandigarh, the States of Punjab & Haryana, Jammu & Kashmir and Himachal Pradesh.
8	Regional Bench, Allahabad	Allahabad	State of Uttar Pradesh
9	Regional Bench, Hyderabad	Hyderabad	Territorial jurisdiction of erstwhile state of Andhra Pradesh i.e. Andhra Pradesh, Telangana and Yanam commune of the Union Territory of Pondicherry.

Single Member Bench

The President or any member may sitting singly, dispose of matters where the value of the goods confiscated absolutely or the duty in dispute (where the classification and valuation is not one of the points of dispute) or the amount of fine or penalty does not exceed Rupees Fifty Lakhs.

Division Bench

Each division bench shall comprise one Judicial member and one Technical member. In case of difference of opinion, the matter is referred to the President to refer to a third member to decide on the points of difference.

Larger Bench

If a Bench hearing the matter finds that there are conflicting decisions, then it may refer the matter to the President of the Tribunal to constitute a Larger Bench of the Tribunal to resolve the conflict.

Anti-Dumping Bench

Under section 9C of the Customs Tariff Act, 1975, an appeal against the order of determination or review under Section 9A shall lie to CESTAT in respect of the existence, degree and effect of -

(i) Any subsidy or dumping in relation to import of any article; or

(ii) Import of any article into India in such increased quantities and under such condition so as to cause or threatening to cause serious injury to domestic industry requiring imposition of safeguard duty in relation to import of that article.

The Antidumping Bench is a special bench constituted by the President which consists of the President of the Tribunal and not less than two members and shall include one Judicial member and one Technical member.

Procedural Framework

Types of Appeals

In the Indirect Taxation, both assessee and the Department have been conferred with a right of two or three stage appellate remedies. Against the orders passed by the officers of the rank of Principal Commissioner /Commissioner of Central Excise/Customs/Service Tax or passed by ADG (Adjudication), DRI/DGCEI in the capacity of an adjudicating authority, the first appeal lies before the Customs, Excise & Service Tax Appellate Tribunal (i.e. CESTAT).

However, against the orders passed by the officers, who are lower than the rank of Principal Commissioner /Commissioner of Central Excise /Customs /Service Tax, the first appeal lies to the Commissioner (Appeals) and there from, appeals lies either to the Joint Secretary (Revision Application) or CESTAT, as the case may be.

Against the Order Passed by CESTAT, the Appeal lies before the High Court (in cases other than cases relating to determination of the rate of duty or value of goods) or before the Supreme Court directly if the case relates to the Rate of duty or value of goods, as the case may be. Where the order of the Tribunal does not relate to determination of rate of duty or value of goods, an appeal lies to the High Court. Appellate remedies in Customs/Excise/Service tax matters can be easily understood from the flow diagram i.e. Fig. 1 given below: -

The CESTAT Procedure Rules related to an appeal are as follows -

• The language of the Tribunal shall be English. However, the parties to a proceeding before the Tribunal are allowed to file documents drawn up in Hindi. Moreover, a Bench may also permit the use of Hindi in its proceedings [Ref: Rule 5 of the CESTAT (procedure) Rules]
• The final order passed by the Tribunal is in English. However, the Tribunal may pass such orders in Hindi if deemed fit. If order passed by the Tribunal is in Hindi, then every such order is required to be accompanied by duly attested English translation of the same.
• The appeals have to be filed by the appellant in person or by an agent to the concerned officer in the prescribed Form, or may send the same by registered post [Ref: Rule 6 of the CESTAT (Procedure) Rules]
• Each aggrieved person is required to file a separate appeal and common appeals or joint appeals are not allowed [Ref: Rule 6 A of the CESTAT (Procedure) Rules].
• The parties to the appeal are not entitled to produce any additional evidence, however, in specific circumstances, the Tribunal may permit the submission of additional evidence or affidavit etc. as detailed in the said Rule [Ref: Rule 23 of the CESTAT (Procedure) Rules].

The provisions related to filing of appeals before CESTAT under the four acts are as follows -

Central Excise Act, 1944

Under the Central Excise Act, the process of filing appeals before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) is governed by Sections 35B, 35C, and 35D of the Central Excise Act, 1944. According to Section 35B(3) of the Act, the time limit for filing an appeal before CESTAT is set at three months from the date of communication of the order.

Additionally, Rule 6 of the Central Excise Appeals Rules, 2001 prescribes the forms to be used for filing appeals by the party and for filing the memorandum of cross-objections. The prescribed forms include E.A.-3 for filing an appeal by the party and E.A.-4 for filing the memorandum of cross-objections.

Moreover, for appeals filed by the department, Rule 7 of the Central Excise (Appeals) Rules, 2001 mandates the use of Form EA-5 for filing appeals before the Tribunal.

In terms of the pre-deposit required at the time of filing an appeal, Section 35F of the Central Excise Act, 1944 outlines the quantum of pre-deposit. If the appeal is against the Original Order-in-Original (O-I-O) passed by the Principal Commissioner/Commissioner/ADG (Adjudication) DRI/DGCEI, a pre-deposit of 7.5% of the duty and/or penalty is required. However, if the appeal is against the Original Order-in-Appeal (O-I-A) passed by the Commissioner (Appeals), the pre-deposit amounts to 10% of the duty and/or penalty.

These provisions ensure a structured and regulated process for filing appeals under the Central Excise Act, streamlining the appellate process and ensuring fairness and compliance with statutory requirements.

Customs Act 1962

Under the Customs Act, 1962, the process of filing appeals before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) is governed by Sections 129A, 129B, and 129C. Section 129A(3) of the Act sets the time limit for filing an appeal before CESTAT at three months from the date of communication of the order.

Regarding the prescribed forms for filing appeals by the party and for filing the memorandum of cross-objections, Rule 6 of the Customs Appeals Rules, 1982 mandates the use of Form C.A.-3 for filing an appeal by the party and Form C.A.-4 for filing the memorandum of cross-objections.

For appeals filed by the department, Rule 7 of the Customs (Appeals) Rules, 1982 requires the use of Form Custom CA-5 for filing appeals before the Tribunal.

In terms of the pre-deposit required at the time of filing an appeal, Section 129E of the Customs Act, 1962 stipulates the quantum of pre-deposit. If the appeal is against the Original Order-in-Original (O-I-O) passed by the Principal Commissioner/Commissioner/ADG (Adjudication) DRI/DGCEI, a pre-deposit of 7.5% of the duty and/or penalty is required. However, if the appeal is against the Original Order-in-Appeal (O-I-A) passed by the Commissioner (Appeals), the pre-deposit amounts to 10% of the duty and/or penalty. This requirement is reinforced by CBEC Circular No. 984/8/2014-CX dated 16.09.2014.

Service Tax under Finance Act 1994

Under the Finance Act, 1994, the statutory provisions governing the process of filing appeals before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in relation to service tax matters are outlined in Section 86. Section 86(1) of the Finance Act, 1994 specifies that the time limit for filing an appeal before CESTAT is three months from the date of receipt of the order.

Regarding the prescribed forms for filing appeals by the party and for filing the memorandum of cross-objections, Rule 9 of the Service Tax Rules, 1994, mandates the use of Form ST-5 for filing an appeal by the party and Form ST-6 for filing the memorandum of cross-objections.

For appeals filed by the department, Rule 9(2) & 9(2A) of the Service Tax Rules, 1994, requires the use of Form ST-7 for filing appeals before the Tribunal.

Limitation for filing appeal before CESTAT

As per Section 35B (3) of the Central Excise Act, 1944, and Section 129A (3) of the Customs Act, 1962, the appeal before CESTAT should be filed within three months of the communication of the order, whether it is filed by the party or by the department. However, the Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period, if it is satisfied that there was sufficient cause for not presenting it within that period. Similarly, as per Section 86(1) of the Finance Act, 1994, the appeal in service tax matters has to be filed within three months of the date of receipt of the order.

Fees for filing Appeal

As per Section 35(B)(6) of the Central Excise Act, 1944, Section 129A(6) of the Customs Act, 1962 and Section 86(6) of the Finance Act, 1994, an appeal to the Appellate Tribunal is required to be accompanied by a fee as given below in the Table -

Amount of Duty/Tax and Interest Demanded	Penalty Levied
Five lakh rupees or less	Rs. 1,000/-
More than five lakh rupees but not exceeding fifty lakh	Rs. 5,000/-
More than fifty lakh rupees	Rs. 10,000/-

No fee is payable in the case of Departmental appeal or a memorandum of cross-objections. As per Section 35(B)(7) of the Central Excise Act, 1944, Section 129A(7) of the Customs Act, 1962 and Section 86(6A) of the Finance Act, 1994, every application made before the Appellate Tribunal, (a) in an appeal for rectification of mistake or for any other purpose; or (b) for restoration of an appeal or an application, is required to be accompanied by a fee of five hundred rupees. However, no such fee is payable in the case of an application filed by the Department.

Departmental Appeal

The departmental appeals before CESTAT are commonly known as review proceedings.

Appeal against the Orders passed by the Commissioner (Appeals)

• As per Section 35B(2) of the Central Excise Act, 1944, the Committee of Commissioners of Central Excise may, if it is of opinion that an order passed by the Commissioner (Appeals) is not legal or proper, direct any Central Excise Officer authorized by him in this behalf to appeal to the Appellate Tribunal against such order.
• In cases where the Committee of Commissioners of Central Excise differs in its opinion regarding appeal against the order of the Commissioner (Appeals), the matter is required to be referred to the jurisdictional Principal Chief Commissioner/Chief Commissioner. If the Principal Chief Commissioner or Chief Commissioner after consideration of the order is of the opinion that the order is not legal or proper, then he may direct any Central Excise Officer to file an appeal before CESTAT against such order.
• Similar provisions are contained in Section 129A (2) of the Customs Act, 1962 and Section 86(2A) of the Finance Act, 1994.

Application against the Orders passed by the Principal Commissioner or the Commissioner of Central Excise/ ADG (Adjudication) DGCEI/DRI

• As per Section 35E(1) of the Central Excise Act, 1944, the Committee of Principal Chief Commissioner /Chief Commissioners of Central Excise may, of its own motion, call for and examine the record of any proceeding in which a Principal Commissioner or Commissioner of Central Excise as an adjudicating authority has passed any decision or order for the purpose of satisfying itself as to the legality or propriety of any such decision or order and may, by order, direct such Commissioner or any other Commissioner to apply to the Appellate Tribunal for determination of such points arising out of the decision or order as may be specified by the Committee of Chief Commissioners of Central Excise in its order.
• Where the Committee of Principal Chief /Chief Commissioners of Central Excise differs in its opinion as to the legality or propriety of the decision or order of the Principal Commissioner or the Commissioner of Central Excise, the matter is required to be referred to the Board for consideration. The Board after considering the facts of the decision or order, may, by order, direct such Commissioner or any other Commissioner to apply to the Appellate Tribunal for determination of such points arising out of the decision or order as may be specified in its order.
• Similar provisions are contained in Section 129D(1) of the Customs Act, 1962 and Section 86(2) of the Finance Act, 1994.

Time limits for filing departmental appeals

• As per Section 35E (3) of Central Excise Act, 1944, every order u/s 35E(1) shall be made within a period of three months from the date of communication of the decision or order to be appealed. However, w.e.f. 06.08.2014, it has been provided that the Board may, on sufficient cause being shown, extend the said period by another thirty days.
• As per Section 35E(4) of the Central Excise Act, 1944, after the said order by the Committee of Chief Commissioners, the appeal before CESTAT shall be filed within one month of the said order. Further, it has been provided that the appeal should be filed within a period of one month from the date of communication of the said order.
• However, as the appeals against the order of the Commissioner (Appeals) are covered under Section 35B(2), the total time available for filing an appeal is 3 months only.
• Similar provisions are contained in Section 129D(3) & 129D(4) of the Customs Act, 1962. 12.11 As per Section 86(3) of the Finance Act, 1994, the appeal against the orders of Commissioner or Commissioner (Appeals) is required to be filed within four months from the date on which the order sought to be appealed against is received by the Committee of Chief Commissioners or, as the case may be, the Committee of Commissioners.

Constitution of Review Committees of Principal Chief Commissioners or Chief Commissioners

• Section 35B (1B) of Central Excise Act, 1944, Section 129A(1B) of Customs Act, 1962 and Section 86(1A) of Finance Act, 1994 empower CBEC to constitute the Committees of two Chief Commissioners for the purpose of judging the acceptability of the Orders passed by the Principal Commissioners/Commissioners.
• Similarly, a Committee of two Commissioners is to be constituted for the purpose of judging the acceptability of the orders passed by the Commissioner (Appeals).

The flow diagram explaining the review mechanism of the order passed by the Adjudicating /Appellate Authorities in Customs/Central Excise /Service Tax matters is given below in Figure -

Forms Prescribed for filing Departmental Appeals

• Separate form has been prescribed for the department to file an appeal before the Tribunal. The various Forms prescribed are as under:
  • (a) Rule 7 of Central Excise Appeal Rules, 2001 provides that an appeal before the Appellate Tribunal u/s 35B (1) of the Central Excise Act, 1944 should be made in Form No. E.A. 5.
  • (b) Rule 7 of Customs (Appeals) Rules, 1982 provides that an appeal before the Appellate Tribunal should be made in Form No. C.A.-5.
  • (c) Rules 9(2) & 9(2A) of the Service Tax Rules, 1994, provides that appeal before the Appellate Tribunal should be made in Form No. S.T.-7.

The period for Disposal of Appeal

The Appellate Tribunal may, if sufficient cause is shown, at any stage of hearing of an appeal, grant time, from time to time, to the parties or any of them and adjourn the hearing of the appeal. However, no such adjournment shall be granted more than three times to a party during hearing of the appeal. The Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the decision or order appealed against or may refer the case back to the authority which passed such decision or order with such directions as the Appellate Tribunal may think fit, for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary. The Appellate Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of three years from the date of filing appeal. The Appellate Tribunal is required to send a copy of every such order passed to the Commissioner of Central Excise and the party to the appeal.

Provision for Further Appeal

Appeals in matters where classification or valuation is or one of the issues, appeals lie to the Supreme Court. In other cases, appeals lie to the High Court. On questions of fact, the Tribunal is the final Appellate Authority. With the aim to reduce government litigation, the Central Board of Indirect Taxes and Customs (CBIC) has established guidelines to govern the filing of appeals in revenue matters. Appeals will not be filed under the following circumstances:

• (a) when the amount involved is below the monetary limit set by revenue authorities,
• (b) when the matter is covered by a series of judgments of the Tribunal and High Courts which have not been challenged in the Supreme Court, and
• (c) when the assessee has followed long-standing practice, or due to a mere change of opinion by jurisdictional officers.

To implement these guidelines, Section 35R was inserted into the Central Excise Act, 1944 (also applicable to Service Tax matters by virtue of Section 83 of the Finance Act, 1994), and Section 131BA was inserted into the Customs Act, 1962, effective from October 20, 2010. CBIC has issued instructions specifying monetary limits below which appeals shall not be filed before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), High Court, or Supreme Court. These monetary limits, outlined in CBIC instructions, aim to streamline the appeals process and promote efficient resolution of revenue matters.

Sl. No.	Appellate Forum	Monetary Limit (in Rs.)
1	CESTAT	10 Lacs
2	HIGH COURTS	15 Lacs
3	SUPREME COURT	25 Lacs

The above said monetary limits are not applicable in certain types of cases. It has also been provided that adverse judgments relating to the following should be contested irrespective of the amount involved:

• (a) Where the constitutional validity of the provisions of an Act or Rule is under challenge.
• (b) Where notification/instruction/order or Circular has been held illegal or ultra vires.
• (c) Classification and refunds issues which are of legal and/or recurring nature

Digitisation Status

Main Website

The website of CESTAT provides a comprehensive array of features and services tailored to meet the needs of users involved in legal proceedings before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT). It includes sections offering insight into CESTAT's jurisdiction, bench locations, and functions, aiding users in understanding its role within the Indian legal system. Resources such as the CESTAT Act, rules of practice and procedure, and other relevant regulations are available for reference, ensuring users have access to the legal framework governing appeals before CESTAT. Additionally, the website offers functionalities such as case status tracking, downloadable forms for filing appeals and cross-objections, and access to judgments and orders issued by CESTAT. Users also benefit from news updates, FAQs, and helpdesk support, providing assistance and information on navigating the website and its services. Overall, the website serves as a central hub for individuals involved in CESTAT proceedings, offering valuable resources, tools, and support to facilitate their legal processes effectively.

E-filing

The e-filing of appeals before CESTAT began in February 2023. An e-filing portal was developed by NIC on the order of the Supreme Court dated 14.11.2022 in CA No. 674/2021 followed by OM No. C-18018/2/2021—Coord dated 26.12.2022 issued by the Ministry of Finance. The e-filing portal can be accessed by a username and password created by the users. A user guide was uploaded by the government for the filing of appeals on the portal. The e-filing portal also displays total registered users, total advocate registered, total e-filed appeals and current month appeals.

E-cause List

The CESTAT e-causelist feature offers users the capability to access the cause list for every bench within the tribunal. To utilize this feature, users navigate to the "causelist" tab on the CESTAT website, where they are prompted to select the specific date and bench concerned. Once these parameters are chosen, the website presents PDF documents containing the cause lists related to the selected bench for the specified date.

This feature provides users with valuable insight into the schedule of cases to be heard by each bench on a given day. It allows litigants, advocates, and other stakeholders to prepare accordingly, ensuring they are informed about upcoming hearings and proceedings. Overall, the CESTAT e-causelist feature enhances transparency, accessibility, and efficiency in managing tribunal proceedings, enabling users to stay up-to-date with the schedule of cases and facilitating better preparation for legal proceedings before the tribunal.

Case Status

Users can utilize three primary identifiers: case number, diary number, or party name. By inputting the unique case number, users can directly access precise case information assigned by the tribunal. Alternatively, users may search using the diary number, a reference number for tracking case progress and administrative tasks. For those who may not have specific case or diary numbers, searching by party name allows access to case information associated with the involved parties. This flexibility accommodates various user scenarios and preferences, ensuring that individuals involved in CESTAT proceedings can conveniently stay informed about their case status.

Tribunal Orders

The CESTAT order finding feature offers users the ability to access tribunal orders through two distinct tabs: daily orders and final orders.

In the daily orders tab, users can retrieve day-to-day orders of the selected bench by providing specific search criteria. This includes options such as case number, diary number, member-wise search, order date, or party name. By entering relevant details, users can access interim orders issued by the tribunal for ongoing cases. This feature enables stakeholders to stay informed about the latest developments in tribunal proceedings, facilitating timely access to interim decisions and rulings.

On the other hand, the final orders tab allows users to access conclusive rulings and decisions issued by the tribunal. Similar to the daily orders tab, users can utilize various search criteria such as case number, diary number, member-wise search, order date, or party name to locate specific orders. This feature provides users with comprehensive access to final decisions made by the tribunal, enabling them to review and reference completed cases effectively.

Video Conferencing/Virtual Hearing

In response to the challenges posed by the COVID-19 pandemic, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has adopted video conferencing as an alternative mode for conducting hearings. Initially applied to urgent applications from July 1, 2020, there's been a growing demand to extend this to appeal hearings upon individual request. A procedure was released by the government for using the virtual hearings facility. The preferred platform for such hearings is Jitsi Meet, an open-source software. Technical and infrastructural requirements include a desktop or laptop with proper processing capabilities, HD webcam, microphone, and speakers, alongside a stable internet connection. Parties can request e-hearings by emailing the registry, specifying the desired hearing time. The assistant registrar, with senior member approval, creates a cause list based on the order of case filing. Parties submit brief synopses, written submissions, and relevant legal provisions at least two days before the hearing. The court master then sends an invitation link to the authorized representatives. The hearing is password-protected, with the password provided an hour before the session. Parties must not share this password. The hearing follows a specific schedule, with limited adjournment requests. Parties may opt for e-hearing or in-person attendance. The registry maintains a comprehensive e-hearing register, documenting case details, participants, and outcomes. Detailed protocols ensure quality and efficiency during e-hearings, including specific dress codes and adherence to established procedures. Users receive invitation links and passwords via email, joining the meeting room and following set guidelines for participation.

Disposal Data

The disposal data of CESTAT is uploaded on the notice/circular section for monthly pendencies. However, there is no uniform practice across the benches. A notification was issued by the government for uploading of the disposal data on cestatnew.gov.in. However, the website is not accessible currently.

Issues Involved

1. Pendency: CESTAT faces a significant backlog of cases, with an average pendency of 4-6 years per case. Until March 2023, the tribunal operated below full capacity due to unfilled vacancies. However, by March 2023, all vacancies were filled, enabling CESTAT to operate at maximum capacity. Despite this, with approximately 20,000 new cases registered annually, there is a pressing need to consider expanding CESTAT's benches to handle the workload effectively.
2. Lengthy proceedings: The proceedings have to go through a long process of appeal before the Commissioner (Appeals) and there from, appeals lies either to the Joint Secretary (Revision Application). There is no mandated time for disposal of appeals by the CESTAT. Three year period is only directory in nature.
3. Technical complexity: The legal and financial complexity surrounds the matters related to excise. The litigants may face problems in navigating through several statutes, rules, notifications, circulars which govern the matters related to CESTAT. There is no single consolidated statute governing these tax issues.
4. Underdeveloped website: Improvements can be made to enhance the user-friendliness of the website. Presently, the official CESTAT website does not include an e-filing portal. Integrating all these features into a single website would streamline the user experience, making it more convenient and accessible for users.
5. Appointment of members: Until March 2023, the functioning of CESTAT was constrained by a notable shortage of personnel, comprising only 9 judicial members and 4 technical members. The fact that these vacancies persisted until 2023 highlights the sluggishness of the government in appointing officials to CESTAT. This shortage contributed to delays in the adjudication of cases and added to the existing backlog of pending matters. Despite the subsequent fulfillment of vacancies in 2023, the prolonged period of understaffing underscores the challenges faced by the tribunal in maintaining efficient operations and addressing the workload effectively.

Way Forward

The establishment of CESTAT has been a benchmark in solving the tax related issues. Serving as an appellate mechanism for four acts, CESTAT serves as a significant tribunal. The limitations faced by CESTAT can be addressed by some of the following solutions. Firstly, measures should be implemented to expedite case disposal, such as setting specific timeframes for hearings and judgments and hiring more judicial and technical members to increase the tribunal's capacity. Streamlining the appeal process by reducing the number of stages involved and implementing a mandatory time frame for disposing of appeals can help expedite proceedings. Additionally, comprehensive guidelines and training programs should be developed to assist litigants in navigating through complex legal and financial issues, with a centralized repository of relevant statutes, rules, notifications, and circulars established for accessibility. Investing in upgrading the official CESTAT website to include an e-filing portal and other user-friendly features would enhance accessibility and convenience for users. Lastly, expediting the appointment process for vacant positions within CESTAT through transparent and efficient recruitment procedures is crucial to ensure optimal functioning of the tribunal and address staffing shortages effectively. These solutions collectively aim to enhance operational efficiency, reduce case pendency, improve accessibility for litigants, and strengthen CESTAT's capacity to deliver timely and effective justice.