Low tax effect litigation policy bars departmental appeal where disputed amount falls below the prescribed threshold.

A departmental appeal concerning low tax effect was treated as non-maintainable under the applicable monetary limit policy, because the disputed amount was below the prescribed Rs. 20 lakh threshold. The text also notes that the matter fell within an exclusion clause under the National Litigation Policy, although that clause was later deleted by a subsequent instruction. As a result, the appeal was not considered on merits and was dismissed under the litigation policy.

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Issues: Whether the Revenue's appeal was liable to be dismissed in view of the monetary limit and litigation policy applicable to low-value departmental appeals.

Analysis: The amount in dispute was below the prescribed monetary threshold of Rs. 20 lakhs notified by the Board's instruction. The matter also fell within the exclusion clause under the National Litigation Policy, which had subsequently been deleted by a later instruction. In view of the applicable litigation policy and the low tax effect, the appeal did not warrant consideration on merits.

Conclusion: The Revenue's appeal was dismissed under the litigation policy.

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