Low tax effect threshold bars CESTAT appeal when disputed amounts fall below the CBIC litigation limit.

Appeals before CESTAT are not to be pursued where the tax effect falls below the monetary threshold prescribed by the CBIC under its litigation instructions aligned with the National Litigation Policy. In such cases, the appeal need not be examined on merits, and the proper course is to decline entertainment of the matter. Here, the amounts in dispute were below the applicable limit, so the appeal was not entertained and was disposed of on account of low tax effect.

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Issues: Whether the appeal was liable to be entertained in view of the monetary limit prescribed by the CBIC for filing litigation before the CESTAT.

Analysis: The amounts involved in the appeal were found to be below the monetary limit prescribed for litigation before the CESTAT under the CBIC instruction issued in relation to the National Litigation Policy. In such circumstances, the appeal did not warrant further adjudication on merits.

Conclusion: The appeal was not entertained and stood disposed of on account of the low tax effect.

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