Monetary threshold under Customs litigation policy barred Revenue appeals where tax effect fell below the prescribed limit.

Revenue appeals challenging penalties under Sections 112(b) and 114AA of the Customs Act were held not maintainable because the tax effect in each matter was below the monetary threshold prescribed by the applicable litigation policy instruction dated 02.11.2023. The Tribunal noted that Section 131BA empowers the Board to issue such litigation policy directions to reduce avoidable government litigation, and found that no recognised exception applied to permit the appeals despite the low tax effect. The impugned order therefore remained undisturbed and the Revenue's challenge was dismissed.

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Issues: Whether the Revenue appeals were maintainable in view of the monetary limit prescribed under the litigation policy and whether the penalties imposed under Section 112(b) and Section 114AA of the Customs Act, 1962, involving less than Rs. 50 lakhs in each case, warranted adjudication by the Tribunal.

Analysis: The appeals arose from a common order confirming penalties in individual matters where the disputed amount was below the threshold monetary limit fixed by the Central Board of Indirect Taxes and Customs through its instruction dated 02.11.2023. The Tribunal noted that Section 131BA of the Customs Act, 1962, empowered the Board to frame such litigation policy instructions to reduce government litigation. The dispute did not fall within any stated exception permitting the Revenue to pursue the appeals despite the low tax effect. Accordingly, the appeals were considered barred by the applicable litigation policy.

Conclusion: The Revenue appeals were not maintainable and were dismissed.

Final Conclusion: The Tribunal declined to entertain the Revenue's challenge on account of the prescribed monetary threshold under the Customs litigation policy, leaving the impugned order undisturbed.

Ratio Decidendi: Where the tax effect in each appeal is below the prescribed monetary threshold and no exception under the applicable litigation policy applies, the appeal is liable to be dismissed as not maintainable.

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