Low tax effect barred a customs revenue appeal under departmental monetary-limit instructions, leading to dismissal.

Revenue appeals in customs matters are not maintainable where the total tax effect, including redemption fine and penalty, falls below the departmental monetary threshold prescribed by the applicable Central Board instructions. The High Court noted that those instructions also require withdrawal of pending cases below the prescribed limit. Applying that threshold to the disputed customs demand, the appeal was dismissed as not maintainable for low tax effect.

---

---

Issues: Whether the revenue appeal was maintainable in view of the monetary limit prescribed for departmental appeals, the disputed amount being below the threshold.

Analysis: The appeal arose from a customs dispute involving redemption fine and penalty imposed under the Customs Act, 1962. The total effect of the dispute, comprising the redemption fine and penalty, was found to be below the monetary limit prescribed by the relevant Central Board instructions governing departmental appeals before the High Court. The instructions also contemplate withdrawal of pending cases falling below the prescribed threshold.

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

---