Reduction In Govt. Litigation: CBIC Fixes Monetary Limits For Filing Appeals/Applications Before GSTAT, High Courts And Supreme Court

The Central Board of Indirect Taxes and Customs (CBIC) with the objective of reduction in government litigation fixed the monetary limits for filing appeals or applications by the Department before the Goods and Service Tax Appellate Tribunal (GSTAT), High Courts and Supreme Court.

The Board referred to the National Litigation Policy which was conceived with the aim of optimising the utilisation of judicial resources and expediting the resolution of pending cases. It underscores the importance of prudent litigation practices by establishing thresholds for filing appeals in Revenue matters. Specifically, the Policy mandates that appeals should not be pursued when the amount involved is below a specified monetary limit set by Revenue authorities. It discourages filing appeals in cases where established precedents from Tribunals and High Courts have settled the matter and have not been contested in the Supreme Court.

The Board, on the recommendations of the GST Council, fixes the monetary limits for GSTAT, High Courts and Supreme Court as Rs. 20,00,000, Rs. 1,00,00,000 and Rs. 2,00,00,000 respectively.

The appeal or application or Special Leave Petition shall not be filed by the Central Tax officers before the Goods and Service Tax Appellate Tribunal (GSTAT), High Court and Supreme Court if it is below the monetary limits.

Where the dispute pertains to demand of tax (with or without penalty and/or interest), the aggregate of the amount of tax in dispute (including CGST, SGST/UTGST, IGST and Compensation Cess) only shall be considered while applying the monetary limit for filing appeal.

Where the dispute pertains to demand of interest only, the amount of interest shall be considered for applying the monetary limit for filing appeal.

The amount of penalty shall be considered for applying the monetary limit for filing appeal, Where the dispute pertains to imposition of penalty only.

The amount of late fee shall be considered for applying the monetary limit for filing appeal, Where the dispute pertains to imposition of late fee only.

Where the dispute pertains to demand of interest, penalty and/or late fee (without involving any disputed tax amount), the aggregate of amount of interest, penalty and late fee shall be considered for applying the monetary limit for filing appeal.

Where the dispute pertains to erroneous refund, the amount of refund in dispute (including CGST, SGST/UTGST, IGST and Compensation Cess) shall be considered for deciding whether appeal needs to be filed or not.

Monetary limit shall be applied on the disputed amount of tax/interest/penalty/late fee, as the case may be, in respect of which appeal or application is contemplated to be filed in a case.

In a composite order which disposes more than one appeal/demand notice, the monetary limits shall be applicable on the total amount of tax/interest/penalty/late fee, as the case may be, and not on the amount involved in individual appeal or demand notice.

The monetary limits shall not be applicable where any provision of the CGST Act or SGST/UTGST Act or IGST Act or GST (Compensation to States) Act has been held to be ultra vires to the Constitution of India. Where any Rules or regulations made under CGST Act or SGST/UTGST Act or IGST Act or GST (Compensation to States) Act have been held to be ultra vires the parent Act. Where the matter is related to Valuation of goods or services; or Classification of goods or services; or Refunds; or Place of Supply; or Any other issue, which is recurring in nature and/or involves interpretation of the provisions. Where strictures/adverse comments have been passed and/or cost has been imposed against the Government/Department or their officers.

Circular No. 207/1/2024-GST

Date: 26/06/24

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