Page 34 - ELT_15th August 2020_Vol 373_Part 4

A110 EXCISE LAW TIMES [ Vol. 373

“SUBSTANTIAL QUESTION OF LAW”
UNDER CUSTOMS ACT & INCOME TAX
ACT
By
Vijay Shekhar Jha, LL.M.
ASSOCIATE AT ASAV ATTORNEYS & ADVISORS LLP

In the hierarchy of the appellate structure as stip-
ulated in the Income Tax Act, 1961 and Customs Act,
1962, High Court holds a paramount position. Under In-
come Tax Act, 1961 and Customs Act, 1962, an appeal can
be filed to the High Court against “every order” of the ITAT/CESTAT (including
interim/interlocutory order), if the High Court is satisfied that the case involves
“substantial question of law”.
Relevant provision, both under Income Tax Act, 1961 & Customs Act,
1962, under which an appeal is filed before High Court has been reproduced
herein below :
 Under (Income Tax Act, 1961)
“260A. Appeal to High Court. - (1) An appeal shall lie to the
High Court from every order passed in appeal by the Appellate
Tribunal before the date of establishment of the National Tax Tri-
bunal, if the High Court is satisfied that the case involves a sub-
stantial question of law.
(2) The Principal Chief Commissioner or Chief Commissioner or
the Principal Commissioner or Commissioner or an assessee ag-
grieved by any order passed by the Appellate Tribunal may file
an appeal to the High Court and such appeal under this sub-
section shall be -
(a) filed within one hundred and twenty days from the
date on which the order appealed against is received
by the assessee or the Principal Chief Commissioner
or Chief Commissioner or Principal Commissioner
or Commissioner;
(b) [***]
(c) in the form of a memorandum of appeal precisely
stating therein the substantial question of law in-
volved.
(2A) The High Court may admit an appeal after the expiry of the
period of one hundred and twenty days referred to in clause (a) of
sub-section (2), if it is satisfied that there was sufficient cause for
not filing the same within that period.
(3) Where the High Court is satisfied that a substantial question
of law is involved in any case, it shall formulate that question.
(4) The appeal shall be heard only on the question so formulat-
ed, and the respondents shall, at the hearing of the appeal, be al-
lowed to argue that the case does not involve such question :
EXCISE LAW TIMES  15th August 2020  34