Low tax effect under litigation policy permits withdrawal of Revenue appeal without merits review.

Where the tax effect is below the prescribed monetary limit under the litigation policy, the appellate forum may permit withdrawal of the Revenue's appeal and dispose of the matter without examining the merits. The document applies the Board's instruction implementing the National Litigation Policy, notes that the dispute fell below the notified threshold, and records that no further adjudication on the underlying controversy was required. The appeal was accordingly dismissed as withdrawn, leaving the substantive dispute unadjudicated.

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Issues: Whether the Revenue's appeal was liable to be dismissed as withdrawn in view of the monetary limit prescribed under the litigation policy.

Analysis: The appeal was covered by the Board's instruction implementing the National Litigation Policy. The amount in dispute was below the notified monetary limit of Rs. 20 lakhs, and the Revenue sought withdrawal of the appeal on that basis. In such circumstances, no further adjudication on the merits of the dispute was required.

Conclusion: The prayer for withdrawal was allowed and the appeal stood dismissed as withdrawn.

Final Conclusion: The proceeding was disposed of on the basis of the applicable litigation policy and the low tax effect, leaving the underlying controversy unadjudicated on merits.

Ratio Decidendi: Where the tax effect is below the prescribed monetary limit under the litigation policy, the appellate forum may permit withdrawal and dispose of the appeal without going into the merits.

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