Low tax effect under appeal-filing circular bars customs appeal where seizure value falls below threshold.

Customs appeals were barred by the monetary limit in the appeal-filing circular, because the goods were valued at Rs. 9 lakhs at seizure, below the Rs. 25 lakhs threshold. The Court applied the circular and held the appeal not maintainable for low tax effect, without entering the merits. The underlying question of law was expressly left open for an appropriate case.

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Issues: Whether the customs appeals were liable to be dismissed on account of low tax effect in view of the monetary limit prescribed by the relevant circular.

Analysis: The appeal was examined against the monetary limit fixed by the circular governing filing of appeals before the Supreme Court. The valuation of the goods at the time of seizure was stated to be Rs. 9 lakhs, which was below the prescribed threshold of Rs. 25 lakhs. In such circumstances, the circular applied and the appeal could not be pursued on merits. The question of law was expressly left open for decision in an appropriate case.

Conclusion: The appeal was not maintainable on account of low tax effect and was dismissed.

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