Department cannot file appeal if amount is below specified monetary limit :
National Litigation Policy formulated by Government of India aims to reduce Government litigation. The Policy lays down following policy in respect of revenue matters – (a) Appeals should not be filed where revenue involvement is not high (b) Appeals should not be filed if the matter is covered by a series of judgments of the
Tribunal and High Courts which have held the field and have not been challenged before Supreme Court (c) No appeal shall be filed when the assessee has acted in accordance with the long standing practice and also merely because of change of opinion on the part of the jurisdictional officers. Corresponding provisions have been made in GST law.
The Board(CBEC) may, on the recommendation of the GST Council, from time to time, issue orders or instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of regulating the filing of appeal or application by the tax officer under the provisions of this Chapter – section 120(1) of CGST Act.
It shall not preclude such GST officer from filing appeal or application in any other case involving the same or similar issues or questions of law.
No person, being a party in appeal or application shall contend that the GST officer has acquiesced in the decision on the disputed issue by not filing an appeal or application.
Thus, non-filing of appeal by department cannot be used as precedent.
The Appellate Tribunal or court hearing such appeal or application shall have regard to the circumstances under which appeal or application was not filed by the GST Officer in pursuance of the orders or instructions or directions – section 120(4) of CGST Act.