Audit objection cannot override low tax effect rules; recall of Tribunal dismissal was refused for lack of merit-based justification.

Departmental appeals linked to revenue audit objections must still satisfy the Board's circulars requiring examination of merits before filing; a mere audit objection does not by itself justify recall of a Tribunal's dismissal for low tax effect. The Tribunal held that mechanical reliance on an audit objection cannot override the binding circular framework, and absent substantial material showing error in the earlier dismissal, the recall application could not be entertained. The Revenue's miscellaneous application was therefore rejected.

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Issues: Whether the Revenue's miscellaneous application seeking recall of the Tribunal's earlier dismissal on the basis of low tax effect could be entertained merely because the case involved an audit objection.

Analysis: The Tribunal noted that the Board's instructions and circulars require the Department to examine the merits of the dispute before filing an appeal, even in cases connected with revenue audit objections. Mere reference to an audit objection was held insufficient to justify recall, particularly when no substantial material was placed to show that the earlier appeal dismissal suffered from any error. The Tribunal also found support in the cited High Court view that a mechanical reliance on audit objection does not override the binding circular framework.

Conclusion: The recall request was rejected and the Revenue's miscellaneous application failed.

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