Monetary-limit circular and pending appeals: prima facie view that the filing threshold does not apply retrospectively.

A monetary-limit circular on filing appeals was examined in the context of whether it governs appeals already filed before its issuance. The assessee argued that the appeal was not maintainable because the tax effect fell below the prescribed limit, while the Revenue contended that the circular could not retrospectively affect pending appeals. The Court expressed a prima facie view that the circular would not apply to appeals filed earlier and indicated that the contrary view may need reconsideration by a larger Bench. The matter was placed before the Chief Justice for constitution of a larger Bench.

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Issues: Whether the circular prescribing the monetary limit for filing appeals applies to appeals already filed before the circular and whether the contrary view required reconsideration by a larger Bench.

Analysis: The assessee relied on the monetary limit circular to contend that the appeal was not maintainable because the tax effect was below the prescribed limit. The Revenue contended that the circular could not govern appeals already filed. The Court expressed a prima facie view that the circular would not apply to appeals filed prior to its issuance and noted that the contrary view relied upon may require examination by a larger Bench.

Outcome: The matter was placed before the Chief Justice for constitution of a larger Bench.

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