Threshold limits to file Appeals, In order to reduce the long pending grievances of taxpayers and to minimise litigations pertaining to tax matters and to facilitate the Ease of Doing Business, the Govt of India has decided to increase the threshold monetary limits for filing Departmental Appeals at various levels.
Threshold Monetary Limits for filing Departmental Appeals has been increased in case of
(i) ITAT/CESTAT from Rs.10 lakhs to Rs. 20 lakhs;
(ii) High Courts from Rs. 20 lakhs to Rs. 50 lakhs and in case of
(iii) Supreme Court from Rs. 25 lakhs to Rs. 1 crore.
This is a major step in the direction of litigation management of both direct and indirect taxes as it will effectively reduce minor litigations and help the Department to focus on high-value litigations. In the case of CBDT, out of total cases filed by the Department in ITAT, 34% of cases will be withdrawn. In the case of High Courts, 48% of cases will be withdrawn and in case of the Supreme Court, 54% of cases will be withdrawn.
The total percentage of reduction of litigation from the Department’s side will get reduced by 41%. However, this will not apply in such cases where the substantial point of law is involved.
Similarly, in the case of CBIC, out of total cases filed by the Department in CESTAT, 16% of cases will be withdrawn. In the case of High Courts, 22% of cases will be withdrawn and in the case of the Supreme Court, 21% of cases will be withdrawn.
The total percentage of reduction of litigation from the Department’s side will get reduced by 18%. However, this will not apply in such cases where the substantial point of law is involved.
This step will also reduce future litigation flow from the Department side.
Threshold limits to file Appeals
Note: All information has been provided by the Ministry of Finance, the official notification is not available as of now. The user must verify the given information at his own capacity.