Tax effect below litigation threshold bars departmental appeal under the Board's circular and national litigation policy.

Departmental appeals are not to be pursued where the tax effect is below the monetary limit prescribed by the litigation policy circular. On the facts stated, the demand was only Rs. 25,000 against a threshold of Rs. 10 lakhs, so the appeal fell within the low tax effect bar under the Board's circular dated 17 December 2015 and the national litigation policy. The appeal was therefore treated as not maintainable and dismissed in limine.

---

---

Issues: Whether the departmental appeal was maintainable when the total demand was below the monetary limit prescribed under the Board's circular governing litigation policy.

Analysis: The appeal involved a total demand of only Rs. 25,000, which was far below the monetary threshold of Rs. 10 lakhs. In view of the Board's circular dated 17 December 2015 and the national litigation policy, the department ought not to have pursued the appeal in such a low tax effect matter.

Conclusion: The appeal was held to be not maintainable and was dismissed in limine.

---