Monetary thresholds for tax appeals: a CBIC circular bars continuation of pending appeals where tax in dispute falls below the limit.

A CBIC circular prescribing monetary limits for tax demands applies to pending appeals, including appeals under the prior statute, because its directive that an appeal "should not be pursued" encompasses ongoing proceedings; the operative effect is that appeals before the Supreme Court where the tax component falls below the prescribed monetary threshold are barred and must be dismissed. The Court limited its determination to applicability and effect of the circular and expressly declined to decide the substantive legal questions decided by the High Court.

---

---

Issues: (i) Whether the monetary limit fixed by Circular F. No. CBIC-20001/4/2024-GST dated 26.06.2024 applies to pending appeals including those initiated under earlier statutes; (ii) Whether the present appeals must be dismissed because the tax component in dispute is below the monetary threshold fixed by the said Circular.

Issue (i): Whether the monetary limit fixed by the Circular dated 26.06.2024 applies to pending appeals, including appeals pursued under the old Act.

Analysis: The Circular provides that appeals should not be pursued where the aggregate amount of tax in dispute falls below the prescribed monetary limits and expressly refers to disputes pertaining to demand of tax (including CGST, SGST/UTGST, IGST and compensation cess) for application of the monetary limit. The language of the Circular uses the mandate that an appeal "should not be pursued," which encompasses both future filings and pending appeals. The Circular's paragraph stating application to tax demands was applied to the facts of the present proceedings.

Conclusion: The monetary limit fixed by Circular F. No. CBIC-20001/4/2024-GST dated 26.06.2024 applies to pending appeals, including appeals pursued under the old Act.

Issue (ii): Whether the present appeals must be dismissed because the tax component in dispute is below the monetary threshold fixed by the Circular.

Analysis: The undisputed tax component in the present appeals is Rs. 25,47,448/-, which is below the Supreme Court monetary threshold of Rs. 2,00,00,000/- set out in the Circular. Applying the Circular's monetary limits to pending appeals leads to the conclusion that appeals with tax effect below the prescribed limit should not be pursued before the Supreme Court. The Court refrained from expressing any view on the underlying legal question decided by the High Court and limited its determination to applicability of the Circular and its effect on pursuit of the appeals.

Conclusion: The present appeals are barred by the monetary limit in Circular F. No. CBIC-20001/4/2024-GST dated 26.06.2024 and therefore must be dismissed.

Final Conclusion: The Circular dated 26.06.2024 prescribing monetary limits for pursuing appeals applies to pending proceedings and results in dismissal of appeals before the Supreme Court where the tax in dispute is below the prescribed threshold; the Court has not decided the substantive legal issues raised on merits.

Ratio Decidendi: A circular fixing monetary thresholds under the national litigation policy that directs that appeals "should not be pursued" applies to pending appeals and bars continuation of appeals before the Supreme Court where the tax in dispute is below the prescribed monetary limit.

---