Litigation policy monetary threshold bars departmental appeals where disputed tax effect falls below the prescribed limit.

Departmental appeals are barred under the applicable litigation policy where the disputed tax effect is below the prescribed monetary threshold. Applying the government circulars governing departmental litigation, the Tribunal noted that the disputed duty was under the limit of Rs. 10 lakhs and therefore the Revenue's appeal could not be entertained on merits. The connected stay petition was also disposed of, reflecting that the appeal did not survive once the tax effect fell below the threshold fixed for litigation management.

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Issues: Whether the Revenue's appeal was liable to be dismissed under the litigation policy on the ground that the disputed duty was below the prescribed monetary limit.

Analysis: The disputed duty involved was below Rs. 10 lakhs, the monetary threshold notified by the Government in the cited circulars governing departmental appeals. Since the case fell within the prohibition against pursuing appeals below the prescribed limit, the Tribunal held that the appeal could not be entertained on merits.

Conclusion: The appeal was dismissed under the litigation policy and the connected stay petition was disposed of.

Final Conclusion: The departmental appeal did not survive because the tax effect was below the applicable monetary threshold fixed for litigation management.

Ratio Decidendi: Departmental appeals are not to be pursued where the disputed tax effect is below the monetary limit prescribed under the applicable litigation policy.

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