Monetary litigation threshold bars departmental appeals where the tax effect is below the prescribed limit.

Revenue appeals were treated as not maintainable on merits where the tax effect fell below the prescribed monetary threshold for departmental litigation. The Tribunal noted that the dispute was also covered by the then-applicable litigation policy exclusion clause, even though that exclusion was later deleted by a subsequent instruction. On those facts, the departmental challenge was disposed of under the litigation policy, with the stay petitions also disposed of accordingly.

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Issues: Whether the Revenue's appeals were liable to be dismissed under the litigation policy on the ground that the amount involved was below the prescribed monetary limit.

Analysis: The appeals concerned a monetary amount below Rs. 20 lakhs, which was covered by the instruction prescribing the monetary threshold for departmental appeals. The matter also fell within the exclusion clause under the National Litigation Policy then in force, and that exclusion had subsequently been deleted by a later instruction. On these facts, the Tribunal held that the appeals were not fit for adjudication on merits and were liable to be disposed of under the litigation policy.

Conclusion: The Revenue's appeals were dismissed under the litigation policy.

Final Conclusion: The departmental challenge did not survive because the dispute fell below the applicable monetary threshold, resulting in dismissal of the appeals and disposal of the stay petitions.

Ratio Decidendi: Where the tax effect falls below the prescribed monetary limit and the case is covered by the applicable litigation policy instructions, the departmental appeal is not to be entertained on merits and is liable to be dismissed.

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