CBIC issued Instructions for Monetary Limits in Government Litigation Appeals

By:

The Ministry of Finance, Department of Revenue, CBIC (Judicial Cell), issued instructions vide F. No. 390/Misc/30/2023-JC dated November 2, 2023, to reduce government litigation, setting monetary limits for filing appeals before CESTAT, High Courts, and the Supreme Court.

In exercise of the powers conferred by Section 131BA of the Customs Act, 1962 and in partial modification of earlier instruction issued from F. No. 390/Misc./163/2010-JC dated August 17, 2011, the Central Board of Indirect Taxes & Customs (hereinafter referred to as the Board) fixes the following monetary limits below which appeal shall not be filed in the CESTAT, High Court and the Supreme Court:

S. No.

Appellate Forum Monetary limit
1 SUPREME COURT

Rs. 2 Crore

2

HIGH COURTS Rs. 1 Crore
3 CESTAT

Rs. 50 Lakh

Adverse judgments relating to the following should be contested irrespective of the amount involved:

a) Where the constitutional validity of the provisions of an Act or Rule is under challenge;

b) Where Notification/ Instruction/ Order or Circular has been held illegal or ultra vires;

c) Classification and refund issues which are of legal and/ or recurring nature.

Withdrawal process in respect of pending cases in above forums, as per the above revised limits, will follow the current practice that is being followed for the withdrawal of cases from the Supreme Court, High Courts, and CESTAT.

The Instructions can be accessed at: https://www.a2ztaxcorp.com/wp-content/uploads/2023/11/CBIC-Instructions-November-02-2023.pdf