Audit-objection exception under tax appeal circulars requires merits review before recall; bare reference is insufficient.

Departmental appeals and recall applications cannot be sustained merely by invoking the audit-objection exception to the monetary-limit circulars. The Tribunal applied Circular No. 17 of 2019 and Circular No. 5 of 2017 and held that the exception requires a real examination of whether the audit objection was accepted and whether the matter was fit for contest on merits. As no substantial material showed due evaluation before filing, a bare reference to audit objection was insufficient. The Revenue's miscellaneous applications were therefore held not maintainable and were rejected.

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Issues: Whether the Revenue's miscellaneous applications seeking recall of the Tribunal's earlier order could be entertained on the ground that the assessments were reopened on audit objection and therefore allegedly fell within the exception to the monetary-limit circular.

Analysis: The Tribunal noted that Circular No. 17 of 2019 and the earlier Circular No. 5 of 2017 governed filing of departmental appeals and that the exception relating to audit objection did not permit a mechanical recall or filing without examining whether the objection had been accepted and whether the matter was fit to be contested on merits. The Tribunal held that no substantial material had been placed on record to show that the appeals had been filed after due evaluation of merits, and mere reference to audit objection was insufficient to justify recall of the earlier disposal.

Conclusion: The Revenue's miscellaneous applications were not maintainable and were rejected, resulting in dismissal of all three applications.

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