Tax effect threshold bars pending Supreme Court appeals under the circular, with the substantive question left open.

A monetary threshold circular governing tax effect barred appeals before the Supreme Court where the aggregate tax in dispute fell within the prescribed limit. The Court treated the 26.06.2024 circular, which directs that appeals should not be pursued, as applying to both fresh and pending appeals, including matters arising under the repealed sales tax regime. The repealing provision was held not to override the circular for this purpose. As the threshold applied, the appeals were dismissed, while the substantive question of law in the appeal was left open.

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Issues: Whether the appeals were barred from being pursued before the Supreme Court on account of the monetary threshold prescribed in the circular governing tax effect, and whether that threshold applied to pending appeals arising under the repealed sales tax regime.

Analysis: The circular dated 26.06.2024 prescribed a monetary limit of Rs. 2 crore for appeals before the Supreme Court and expressly referred to disputes involving tax demand, with the aggregate tax in dispute alone to be considered for applying the limit. The Court read the expression used in the circular, including the direction that appeals should not be pursued, as applicable not merely to fresh filings but also to pending appeals. The reliance placed on the repealing provision was rejected for the purpose of overriding the circular. The substantive question of law raised in the appeal was not examined and was left open.

Conclusion: The appeals were held to be barred by the monetary limit in the circular and were dismissed in favour of the assessee.

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