Low tax effect litigation policy bars departmental appeals where the monetary threshold is not met.

A departmental appeal before CESTAT was found not maintainable because the tax effect fell below the monetary threshold under the applicable litigation policy. The Tribunal applied the Board's litigation instructions to pending appeals and followed the principle that such instructions continue to govern where no contrary exclusion exists. As the low tax effect bar applied, the appeal was not entertained and was dismissed without a merits review.

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Issues: Whether the Revenue's appeal was maintainable in view of the low tax effect and the applicable departmental litigation policy.

Analysis: The amount involved was below the monetary threshold prescribed by the Board's litigation policy for filing appeals before the Tribunal. The Tribunal treated the relevant Board instructions as applicable and followed the view that such circulars remained operative when the appeal came up for hearing. It relied on the judicial position that departmental litigation instructions govern pending appeals where no contrary exclusion is provided.

Conclusion: The Revenue's appeal was not entertained on account of low tax effect and was dismissed without examination of the merits.

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