Monetary threshold for tax appeals bars Revenue from pursuing Tribunal appeals below the prescribed limit.

CBIC instructions dated 02.11.2023, issued to regulate filing and pursuit of appeals before the Tribunal, fixed a monetary limit of Rs. 50 lakh. Where the duty involved in each appeal was below that threshold, the instructions were treated as binding on the Department and the appeals were held not maintainable. The Tribunal also noted that the instructions contemplated withdrawal of pending cases falling below the prescribed limit. The merits of the reassessment were not examined because the appeals failed on low tax effect.

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Issues: Whether the Revenue's appeals were maintainable in view of the CBIC instructions fixing a monetary threshold for filing and pursuing appeals before the Tribunal.

Analysis: The instructions dated 02.11.2023 were issued in exercise of the power to regulate filing of appeals and prescribed a monetary limit of Rs. 50 lakh for appeals before the Tribunal. The duty involved in each appeal was below that threshold. The instructions also contemplated withdrawal of pending cases falling below the prescribed limit. The Tribunal treated the instructions as binding on the Department and followed the consistent judicial approach that appeals below the monetary limit are not to be pursued.

Conclusion: The appeals were not maintainable and were dismissed on the ground of low tax effect.

Final Conclusion: The Revenue could not pursue the appeals because the disputed duty in each matter was below the applicable monetary limit fixed by the Board, and the merits of the reassessment were not adjudicated.

Ratio Decidendi: Board instructions issued under the statutory power to regulate appeals are binding on the Department, and appeals below the prescribed monetary limit are not maintainable.

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