Pre-Deposit Waiver Denied for CESTAT Appeal u/s 35F of Excise Act: Delhi HC Grants Extension Till 31 Oct 2025 for Remaining Payment [Read Order]
The Court denied the petitioner’s request for partial waiver of pre-deposit for filing an appeal before CESTAT, citing settled legal precedents, but granted an extension till 31st October 2025 to make the remaining payment.
The Court denied - petitioner’s request - partial waiver - pre-deposit - filing - appeal before CESTAT - citing settled legal precedents - granted an extension - remaining payment. - taxscan
The Court denied - petitioner’s request - partial waiver - pre-deposit - filing - appeal before CESTAT - citing settled legal precedents - granted an extension - remaining payment. - taxscan
The Delhi High Court has rejected a plea for partial waiver of the mandatory pre-deposit required under Section 35F of the Central Excise Act, 1944, for filing an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) and granted the petitioner an extension till 31st October 2025 to deposit the remaining amount.
The petition was filed by N.K. Sharma (petitioner) under Articles 226 and 227 of the Constitution of India, seeking waiver of Rs. 1,12,000/-, which constitutes 2.5% of the penalty amount, for filing the appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
The appeal arises from a Show Cause Notice dated 27th April 2022, leading to an Order in Original dated 20th March 2023, which confirmed a service tax demand of Rs. 44,74,935/- under Section 73(1) of the Finance Act, 1994, read with Section 174 of the Central Goods and Services Tax Act, 2017.
Interest for the confirmed demand and penalties had also been imposed on the petitioner. The petitioner submitted that 7.5% of the pre-deposit had already been made, but financial constraints prevented payment of the remaining 2.5%. The petitioner sought waiver on these grounds.
The respondent opposed the waiver, relying on the decision in Diamond Entertainment Technologies vs. Commissioner Central Goods and Service Tax Commissionerate Dehradun and Another which held that no discretion exists for waiving the mandatory pre-deposit.
The respondent also stated that this judgement also followed in Impressive Data Services Private Limited vs. Commissioner (Appeals-I), Central Tax GST, Highlighting that Section 107(6) of the CGST Act requires full payment of admitted amounts and 10% of disputed tax, without scope for waiver.
A bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta observed that the prayer for partial waiver was not tenable in light of the settled legal position.
The court, in view of the facts and circumstances, granted the petitioner time till 31st October 2025 to make the remaining pre-deposit. The petition was disposed of accordingly, along with any pending applications.
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