Monetary threshold for Customs appeals: CBIC instruction bars Revenue from filing CESTAT appeals where disputed duty is below Rs50 lakh, so appeals dismissed.

CBIC instructions promulgated under its statutory powers prescribe a monetary threshold of Rs.50,00,000 as a precondition for filing departmental appeals before the CESTAT; matters below that limit are to be filtered by the Government litigation policy. The Tribunal applied that instruction to Revenue appeals where the adjudicating authority dropped a customs duty demand of Rs.20,85,698, holding such appeals not maintainable and dismissible as falling below the prescribed threshold. The operative effect is that Revenue cannot prosecute appeals before the Tribunal for disputes where the customs duty in issue is beneath the CBIC-prescribed monetary limit.

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Issues: Whether the appeals filed by the Revenue are maintainable before the Tribunal in view of the CBIC Instruction dated 02.11.2023 prescribing a monetary threshold of Rs.50,00,000/- below which appeals shall not be filed.

Analysis: The appeals challenge the portion of customs duty demand of Rs.20,85,698/- which was dropped by the adjudicating authority; the disputed amount falls below the Rs.50,00,000/- threshold prescribed in Instruction F. No. 390/Misc/30/2023-JC dated 02.11.2023 issued under the powers conferred by Section 131BA of the Customs Act, 1962. The Instruction aims to limit Government litigation by restricting filing of appeals below the specified monetary limit, subject to specified categories (which are not applicable in these appeals). The Tribunal notes that both sides have confirmed that the disputed amount is below the prescribed limit and that the matters do not fall within any exception identified in the Instruction.

Conclusion: The appeals filed by the Revenue are not maintainable under the CBIC Instruction dated 02.11.2023 and are dismissed; decision is in favour of the assessee.

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