Monetary limits for departmental appeals apply to pending customs matters; later exceptions operate prospectively only.

A later CBIC instruction prescribing monetary limits for departmental customs appeals applies to pending appeals, reflecting its litigation-reduction purpose. The Court extended the approach used for comparable CBDT circulars and held that the current monetary threshold governs whether a pending appeal should continue. A newly introduced exception in Clause 2(c) was held to operate prospectively only, so it could not be invoked for an appeal filed before the exception was added. The appeal was therefore not maintainable because the tax effect fell below the applicable limit and the exception did not apply.

---

---

Issues: (i) Whether the monetary limits prescribed in the latest CBIC instruction apply to pending customs appeals; (ii) whether the exception in Clause 2(c) of the instruction can be invoked for an appeal filed before that exception was introduced.

Issue (i): Whether the monetary limits prescribed in the latest CBIC instruction apply to pending customs appeals.

Analysis: The governing instruction was treated as intended to reduce litigation, and the same approach previously applied to comparable CBDT circulars was extended to the CBIC instruction. On that basis, the latest monetary limits were held relevant for deciding whether a pending appeal should continue to be prosecuted.

Conclusion: The monetary limits in the latest CBIC instruction apply to pending appeals.

Issue (ii): Whether the exception in Clause 2(c) of the instruction can be invoked for an appeal filed before that exception was introduced.

Analysis: The exception relied upon was held to operate prospectively. Since the appeal had been filed before the exception was introduced, the exception could not justify continuation of the appeal.

Conclusion: The exception in Clause 2(c) is not available to the appeal.

Final Conclusion: The appeal could not be entertained because the tax effect was below the applicable monetary limit, and the invoked exception was inapplicable to a pre-existing appeal.

Ratio Decidendi: A later circular or instruction prescribing monetary limits for departmental appeals applies to pending appeals, but a subsequently introduced exception to that regime operates only prospectively unless expressly made retrospective.

---