High Court allows appeal without pre-deposit, duty amount not quantified

The High Court set aside the Commissioner of Customs (Appeals) order directing a petitioner to deposit impugned demand for an appeal on merits. The court ruled that as duty amount was not quantified, no pre-deposit was necessary for the appeal from the Deputy Commissioner's order to be heard on merits. The rule was made absolute with no costs.

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Issues:
Challenge to order of Commissioner of Customs (Appeals) regarding deposit for appeal on merits.

Analysis:
The petitioner challenged the order of the Commissioner of Customs (Appeals) dated 9 January, 2013, which directed the petitioner to deposit the impugned demand to entertain the appeal on merits from the order dated 11 June, 2012 passed by the Deputy Commissioner of Customs. The petitioner imported goods for setting up a Waste Water Treatment Plant for M/s. Indian Glycols Ltd. under Project Import Regulations, 1986. The Deputy Commissioner of Customs found that the goods were imported for substantial expansion, not initial setting up, leading to deregistration of the project import contract. However, the order did not confirm or demand any duty amount from the petitioner, only directing assessment on merits and duty determination. As the duty amount was not quantified, the High Court held that no pre-deposit of duty was required for the appeal to be heard on merits by the Commissioner of Customs (Appeals). The court set aside the order of the Commissioner of Customs (Appeals) and directed the appeal from the Deputy Commissioner's order to be heard on merits without insisting on any pre-deposit of duty. The rule was made absolute with no order as to costs.

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