Pre-Deposit cannot be waived for Financial Grounds: CESTAT dismisses Appeal [Read Order]

The Customs Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi dismissed the appeal on the ground that pre-deposit cannot be waived for financial grounds.

A communication dated March 03, 2022, was sent to the appellant, M/s Prem Kumar Ojha requiring the appellant to make the pre-deposit failing which the appeal would be listed before the Bench on April 5, 2022. When the matter was listed before the Bench on the said date no one appeared on behalf of the appellant nor the pre-deposit was made.

The Bench, however, granted six weeks’ time to the appellant to make the pre-deposit and further directed that the matter would be listed on May 24, 2022. Even on May 24, 2022, the appellant did not appear nor was the pre-deposit made. However, in the interest of justice, the Bench granted four weeks further time to the appellant to make the pre-deposit.

An application was filed by the appellant seeking a waiver of the pre-deposit. The reason stated is that the appellant has a good case on merits in view of the judgment of the Supreme Court in Canon India Pvt. Ltd. v/s Commissioner of Customs. The appellant has further stated that he is not in a position to make the pre-deposit because the appellant is not doing any business; the father of the appellant is ill and the appellant has taken a house on loan for which he has to make regular monthly installments.

The bench consisting of Justice Dilip Gupta, President, and P V Subba Rao, Technical Member observed that “In the decision of the Delhi High Court in Dish TV India Limited vs. Union of India &Orswherein the requirement of pre-deposit under section 129E of the Customs Act, came up for consideration. The High Court held that when the Statue itself provided a wavier of pre-deposit to the extent of 90% or 92.5% of the duty amount and made it mandatory to deposit 7.5% or 10% of the duty amount, the Courts cannot waive this requirement of a deposit.

In view of the aforesaid decisions of  various Courts, it is not possible to grant a waiver of the pre-deposit amount.”

To Read the full text of the Order CLICK HERE

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