Pre-deposit compliance under Central Excise law must be followed unless set aside; non-compliance justifies dismissal of the appeal.

Section 35F of the Central Excise Act, 1944 treats pre-deposit of adjudicated duty or penalty as the default rule for appeal, subject to waiver or relaxation only on undue hardship and protection of Revenue interests. A pre-deposit direction issued within jurisdiction is not a nullity merely because it is said to be erroneous, and it must be complied with unless set aside in proper proceedings. Where no separate statutory appeal lies against that direction, the grievance cannot justify non-compliance. Failure to make the deposit attracts dismissal of the appeal.

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Issues: Whether the dismissal of the appeal for failure to comply with the pre-deposit direction could be interfered with, and whether the pre-deposit order could be treated as non-est in the absence of a separate challenge.

Analysis: Section 35F of the Central Excise Act, 1944 makes deposit of the adjudicated duty or penalty the primary rule for an appeal, while its proviso permits waiver or relaxation only on the basis of undue hardship and safeguarding of Revenue interests. An order directing pre-deposit, once passed by the appellate authority within its jurisdiction, is not treated as a nullity merely because it is said to be erroneous; such an order must be complied with unless it is set aside in appropriate proceedings. The right of appeal is statutory, and where no appeal lies against the pre-deposit order under the governing scheme, the grievance against that order cannot be used to ignore compliance. Failure to make the pre-deposit therefore attracts the statutory consequence of dismissal of the appeal.

Conclusion: The dismissal of the appeal for non-compliance with the pre-deposit requirement was upheld, and no interference was warranted.

Ratio Decidendi: A lawful pre-deposit direction under Section 35F of the Central Excise Act, 1944 must be obeyed unless set aside in proper proceedings, and non-compliance justifies dismissal of the appeal.

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