Low tax effect barred further pursuit of departmental appeal; challenge to Rule 8(3A) remained open.

Departmental appeals were not pursued where the tax effect fell below the monetary threshold of Rs. 2 crores under the governing circular dated 06.08.2024, and the Court declined to examine the matter on merits for that reason. The challenge to the validity of Rule 8(3A) of the Central Excise Rules, 2002 was not adjudicated, with the legal question kept open for consideration in an appropriate case. The appeal was disposed of.

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Issues: Whether the departmental appeal could be pursued when the duty involved was below the monetary threshold prescribed in the governing circular, and whether the challenge to the validity of Rule 8(3A) of the Central Excise Rules, 2002 required adjudication on merits.

Analysis: The tax effect in the appeal was below the threshold of Rs. 2 crores referred to in the circular dated 06.08.2024. In similar connected proceedings, the challenge had been treated as not pressed. The Court found no justification to continue the proceedings on merits in view of the low tax effect, while keeping the question of law open for consideration in an appropriate case.

Outcome: The appeal was disposed of.

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