Tax Effect less than prescribed monetary limit, Customs Dept withdraws appeal before Madras HC [Read Order]

In a recent development at the Madras High Court, the Commissioner of Customs, Chennai II Commissionerate, withdrew appeals filed against various entities in a tax dispute.

The appeals were brought before the Madras High Court in response to final orders issued by the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), Chennai, on 25th January 2023. The appeals filed under Section 130 of the Customs Act, challenging the final orders passed by CESTAT, Chennai.

The withdrawal came as a result of the tax effect in these cases falling below the prescribed monetary limit. This decision is in line with the CBIC instruction dated 02.11.2023.

K.S. Ramaswamy, the Standing Counsel representing the appellant, sought permission to withdraw the appeals, citing the updated guidelines.

Upon considering the request and the endorsement made by Ramaswamy, the Standing Counsel, the Single Bench of Madras High Court dismissed the appeals as withdrawn.

Justice R Mahadevan and Justice Mohammed Shaffiq

This withdrawal signifies a resolution in cases where the tax impact was deemed below the tax effect required for filing of appeals.

Read Also: Supreme Court dismisses Appeal of Income Tax Department on Ground of Low Tax Effect

The Apex court has also allowed the income tax and indirect tax appeals to be withdrawn, owing to low tax effect. As per the Notification dated 08.08.2019 at Instruction No.17 of 2019”the Central Board of Direct Taxes enhanced the  specified monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal. High Courts and SLPs/appeals before the Supreme Court .

Read More: Monetary Limits for filing of Income Tax Appeals by Department: SC dismisses revenue appeal w.r.t low tax effect

To Read the full text of the Order CLICK HERE

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