Mandatory pre-deposit under the Customs Act barred hearing of the appeal when the required deposit was not made.

Mandatory pre-deposit under Section 129E of the Customs Act, 1962 was a condition precedent for entertaining the appeal against penalty. Because the required deposit of 7.5% of the penalty had not been made, the statutory prerequisite remained unsatisfied and the appeal was not maintainable. The appeal was therefore dismissed at the threshold for non-compliance with the pre-deposit requirement.

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Issues: Whether the appeal was maintainable without compliance with the mandatory pre-deposit requirement under Section 129E of the Customs Act, 1962.

Analysis: The appeal challenged a penalty imposed under the Customs Act. The applicable pre-deposit requirement, as amended, required deposit of 7.5% of the penalty as a condition precedent for hearing the appeal. As no such compliance had been made, the statutory prerequisite for entertaining the appeal remained unsatisfied.

Conclusion: The appeal was held to be not maintainable and was dismissed.

Final Conclusion: Non-compliance with the mandatory pre-deposit condition resulted in dismissal of the appeal at the threshold.

Ratio Decidendi: Where the statute makes pre-deposit a condition precedent for hearing an appeal, failure to comply renders the appeal not maintainable.

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