Low tax effect disposal under CBIC circular; appeals dismissed administratively and relief granted to the assessee.

The text addresses administrative disposition of tax appeals where the tax effect is minimal, applying the CBIC circular permitting non-adjudicatory closure of matters with low tax consequence; the governing principle is administrative disposal rather than judicial determination, and the effect is that the appeals are dismissed on that administrative ground with relief to the assessee. The substantive claims were not adjudicated; final disposition rests on the CBIC policy criterion of minimal tax consequence and reliance on that circular as the operative procedural basis for disposal.

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Issues: Whether the appeals should be dismissed on the ground of low tax effect in view of the Central Board of Indirect Taxes & Customs (CBIC) circular.

Analysis: The Court notes the statement by the appellant that the duty involved in each appeal does not exceed two crores and applies the administrative framework established by the CBIC circular concerning low tax effect. Having regard to the CBIC policy that permits administrative disposal of matters involving minimal tax consequences, the Court refrains from adjudicating the substantive claims and relies on the circular as the governing administrative criterion for final disposition.

Conclusion: The appeals are dismissed on the ground of low tax effect in accordance with the CBIC circular; outcome is in favour of the assessee.

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