Monetary limit circular bars departmental appeals where the tax effect is low, leaving substantive questions undecided.

Departmental appeals under the Central Excise Act were disposed of at the threshold because the monetary limit circular for Supreme Court appeals was not met. The Court noted the prescribed low tax effect limit and, without examining the merits of the controversy, declined to entertain the appeals and left the legal questions open. The operative effect was that the matter ended on the basis of the appeal threshold set by the circular, not on adjudication of the substantive issues.

---

---

Issues: Whether the appeals were liable to be disposed of in view of the monetary limit circular applicable to appeals before the Supreme Court.

Analysis: The appeals were filed by the Revenue under Section 35G of the Central Excise Act, 1944. At the hearing, the Court noted the circular issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs prescribing a monetary limit of Rs. 2 crore for filing appeals before the Supreme Court. In view of the low tax effect, the Court did not enter into the merits of the controversy and disposed of the appeals in terms of the circular.

Conclusion: The appeals were not entertained on the basis of the monetary limit circular and were disposed of without adjudication on merits.

Final Conclusion: The dispute was concluded at the threshold on the ground of low tax effect, while leaving the questions of law open.

Ratio Decidendi: Where the monetary limit for departmental appeals is not met, the appellate court may dispose of the matter without examining the merits and leave the legal questions open.

---