The finance ministry has substantially raised the monetary threshold for legally contesting indirect tax disputes, a move which aims to reduce the burden of litigation. The Central Board of Excise and Customs ( CBEC), the apex indirect taxes body under the finance ministry, has instructed its officials not to file appeals in the tax tribunals if the fine and penalty on an alleged offender is less than Rs 5 lakh. The existing threshold for approaching an appellate tribunal is Rs 1 lakh. The order, which will take effect from September 1, covers all the indirect taxes levied by the central government, that is, customs duty, excise duty and service tax. "The idea is to cut down on unnecessary litigation," a government official said, adding, "the revision in threshold had become necessary in the present day economic reality."
Source : Economic Times
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