Monetary-limit bar on departmental appeals prevented the court from examining the merits of the questions of law.

Departmental appeals are barred where the Board's monetary limit for filing such appeals is not met. The Madras High Court held that, because the redemption fine and penalty as reduced by the Commissioner (Appeals) fell below the prescribed threshold, the departmental appeal could not be entertained. The Court confined itself to the preliminary objection on maintainability and did not examine the merits of the questions of law.

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Issues: Whether the departmental appeal was maintainable in view of the monetary limit prescribed by the Board circular.

Analysis: The appeal was examined only on the preliminary objection regarding maintainability. The Court noted that the Board circular fixed a monetary limit of Rs. 2,00,000 for filing departmental appeals. The redemption fine and penalty, as reduced by the Commissioner (Appeals), were below that limit, so the circular applied and the appeal could not be entertained. The merits of the questions of law were not gone into.

Conclusion: The appeal was not maintainable.

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