Monetary Limits for Filing Appeals: Key Insights from Circular No. 207/1/2024-GST
<h3>1. <strong>Objective of the National Litigation Policy</strong></h3><p><span>The circular references the National Litigation Policy, which emphasizes prudent litigation practices. Appeals should not be pursued if the amount involved is below specified monetary limits, and cases settled by higher courts should not be contested further.</span></p><h3>2. <strong>Monetary Limits for Filing Appeals</strong></h3><p><span>The circular sets the following monetary limits for filing appeals by Central Tax officers:</span></p><ul><li><span><strong>GSTAT (Goods and Service Tax Appellate Tribunal)</strong>: ₹20,00,000</span></li><li><span><strong>High Court</strong>: ₹1,00,00,000</span></li><li><span><strong>Supreme Court</strong>: ₹2,00,00,000</span></li></ul><h3>3. <strong>Principles for Determining Disputed Amounts</strong></h3><p><span>Key principles to consider while determining if a case falls within these monetary limits:</span></p><ul><li><span>Aggregate tax amount for disputes involving tax (with/without penalty/interest).</span></li><li><span>Interest amount for disputes involving interest only.</span></li><li><span>Penalty amount for disputes involving penalties only.</span></li><li><span>Late fee amount for disputes involving late fees only.</span></li><li><span>Aggregate amount for disputes involving interest, penalty, and late fee (without tax).</span></li></ul><h3>4. <strong>Exclusions from Monetary Limits</strong></h3><p><span>Certain cases are excluded from these monetary limits and can be appealed based on merits, including:</span></p><ul><li><span>Cases where GST laws or regulations are held ultra vires to the Constitution.</span></li><li><span>Disputes related to valuation, classification, refunds, place of supply, and other recurring issues.</span></li><li><span>Cases with adverse comments or cost imposed against the government.</span></li></ul><h3>5. <strong>Emphasis on Reducing Unnecessary Litigation</strong></h3><p><span>The circular reaffirms the objective of reducing unnecessary litigation and providing certainty to taxpayers. It emphasizes that appeals should not be filed merely because the disputed amount exceeds the monetary limits, but based on the merits of each case.</span> <a href="https://cms.plasament.com/storage/shubham-pathak/circular-no-207-01-2024.pdf">circular-no-207-01-2024</a><br> </p>