Pranav B Prem

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has allowed the Customs Department to withdraw a batch of seven appeals after finding that each matter involved disputed amounts below the revised monetary threshold prescribed by the Central Board of Indirect Taxes and Customs (CBIC). The Tribunal held that, in light of the enhanced litigation-management policy, the appeals were not maintainable and could not proceed on merits.

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The order was issued by S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) while hearing a group of connected customs appeals filed by the Commissioner of Customs (APSC), Mumbai, against multiple assessees. The Revenue filed miscellaneous applications requesting permission to withdraw the appeals in terms of the CBIC Instruction dated 02 November 2023, which introduced a monetary threshold of ₹50 lakh for filing appeals before the Tribunal. This limit was subsequently increased to ₹60 lakh through an Instruction issued on 06 August 2024.

On examining the record, the Tribunal found that in all seven cases, the amount of duty in dispute was below ₹60 lakh. In view of the revised monetary limits, the Bench held that the appeals were no longer maintainable. Accordingly, the Tribunal proceeded to allow the Revenue’s withdrawal applications.

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The Bench observed that the appeals could not be adjudicated on merits because the CBIC’s litigation policy mandates a reduction in government appeals below the prescribed threshold. Referring to the policy framework, the Tribunal noted that continuation of the appeals would run contrary to the objective of cutting down avoidable tax litigation.

In its operative direction, the Tribunal stated: “As per the policy decision by CBIC for reduction of government litigation, the appeals filed by Revenue cannot be proceeded with for a decision on merits. … Miscellaneous applications are allowed. Accordingly, the appeals filed by the Revenue are dismissed as withdrawn.” The order was pronounced in open court immediately upon conclusion of the hearing on 14 November 2025.

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With all appeals involving amounts below the revised ₹60 lakh threshold, the Tribunal permitted the Customs Department to withdraw the matters and dismissed all appeals as withdrawn. The decision reinforces the Centre’s ongoing effort to streamline tax litigation and ensure judicial resources are directed to substantial disputes.

Appearance

Counsel For Appellant: C.S. Vinod, Authorized Representative 

Counsel For Respondent: Ananta Khandait, Advocate 

Cause Title: Commissioner of Customs (APSC), Mumbai  Versus M/s eShop World (U.S. Direct E-Commerce) 

Case No: Customs Appeal No. 87049 of 2023

Coram: S.K. Mohanty (Judicial Member), M.M. Parthiban (Technical Member)