Form DRC-03 Not Valid for Excise Pre-Deposit, Must Use CBIC Challan via ICEGATE or Authorized Bank: CESTAT [Read Order]
CESTAT held that pre-deposit under the Excise Act must be made via CBIC portal challan through ICEGATE or an authorized bank, and not through Form DRC-03
The Allahabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that mandatory pre-deposit for filing an appeal under the Central Excise Act must be made through a challan generated on the CBIC portal and paid via ICEGATE or an authorized bank. Payment made using Form DRC-03 under the CGST regime is not valid for excise purposes.
Intercity Courier Services, the appellant, is a courier company based in Moradabad. The appellant had filed an appeal before the Commissioner (Appeals), which was dismissed solely on the ground that the mandatory pre-deposit of 10% of the disputed amount was not made in the prescribed manner.
The Commissioner (Appeals) observed that according to CBIC Circular No. 1070/3/2019-CX dated 24.06.2019, with effect from 1st July 2019, excise and service tax payments must be made through challans generated on the integrated CBIC portal.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
These payments must then be processed via ICEGATE or through an authorized bank. Since the appellant made the pre-deposit using Form DRC-03, a form applicable under GST and not under the Central Excise Act, the appeal was dismissed for non-compliance.
Aggrieved by the dismissal, the appellant approached the CESTAT. The appellant’s counsel argued that the mandatory pre-deposit had now been correctly paid and that the case should be heard on the merits. The revenue representative did not oppose this and confirmed that the required pre-deposit had been made.
The single-member bench comprising Sanjiv Srivastava (Technical Member) observed that the Commissioner (Appeals) had not considered the appeal on merits but had dismissed it only for want of a proper pre-deposit. The appellant had now complied with the deposit requirement, but the tribunal held that the matter should be reconsidered.
The tribunal also clarified that the appellant must not seek a refund of the deposited amount or withdraw it until the appeal is finally decided.
The tribunal allowed the appeal and remanded the matter back to the Commissioner (Appeals) for a fresh decision on merits. The Commissioner (Appeals) was directed to pass a reasoned order within three months, following the principles of natural justice.
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