Binding monetary limits on departmental appeals bar tax litigation below the prescribed threshold.

Departmental appeals are controlled by binding monetary thresholds set in Board instructions, and the Department cannot file or sustain an appeal where the disputed duty or tax falls below the prescribed limit. The Gujarat High Court noted that the revised instruction effective from 01.09.2011 barred High Court appeals where the tax in dispute did not exceed Rs. 10,00,000, and the amounts involved were below that threshold. The Court therefore treated the appeal as not maintainable and declined to examine the substantial question of law, leaving that issue open for an appropriate case.

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Outcome: Appeal dismissed on the ground that the disputed tax and penalty were below the departmental monetary limit for filing appeals before the High Court. The questions of law were kept open.

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