Dept. Can't Challenge Customs Duty Demand, Below Threshold Limit Prescribed By CBIC: CESTAT

In a recent ruling, the Chandigarh bench of CESTAT dismissed an appeal by the Customs department against Sedna Impex India Pvt Ltd. The dispute centered on the assessment of imported fabrics where the department challenged the enhanced value set by the Commissioner (Appeals). However, CESTAT ruled that the appeal was not maintainable as the disputed duty amount fell below the CBIC-prescribed threshold of Rs. 50 lakhs for appeals. \r

The tribunal cited a circular from November 2, 2023, which directs departments not to litigate on matters involving less than the specified sum, promoting litigation efficiency and compliance with national litigation management policy. This decision underscores the importance of adhering to monetary thresholds set by CBIC directives in customs disputes to streamline judicial resources and reduce unnecessary litigation.