Appellant must meet pre-deposit requirement for appeal under amended law

The Tribunal held that the appellant must comply with the mandatory pre-deposit requirement under the amended Section 35F of the Central Excise Act, effective from 6.8.2014. Failure to meet this requirement would lead to the appeal not being entertained, in line with statutory provisions and legal precedents discussed during the analysis.

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Issues Involved:
Whether pre-deposit of 7.5% of the impugned service tax liability is required while filing an appeal against an order-in-original dated before the amendment of Section 35F of the Central Excise Act, 1944.

Analysis:

1. Contentions of the Appellant:
The appellant argued that based on judgments from the Kerala High Court and Punjab & Haryana High Court, mandatory pre-deposit is not required for appeals initiated before the amendment of Section 35F. They cited cases like Muthoot Finance Ltd. Vs. Union of India and M/s A.M. Motors Vs. Union of India where it was held that the appeal should be governed by the provisions existing before the amendment.

2. Contentions of the Respondent:
The respondent, represented by the ld. DR, contended that judgments cited by the appellant do not establish the applicability of the amended Section 35F to appeals filed after the amendment. They referred to the Rajasthan High Court's opinion in RSID Investment Corp. Ltd. Vs. UOI, stating that the amendment should apply even to appeals filed before the effective date to avoid violating Article 14 of the Constitution.

3. Judicial Analysis:
The Tribunal examined the Kerala High Court judgments and noted that they did not provide a general ruling on the applicability of Section 35F pre-amendment to appeals filed post-amendment. The Tribunal also considered the Rajasthan High Court's opinion, emphasizing the importance of the second proviso to the amended Section 35F, which mandates pre-deposit for all appeals filed after 6.8.2014, regardless of when the show cause notices were issued.

4. Legal Provisions:
The Tribunal highlighted the provisions of Section 35F of the Central Excise Act, 1944, effective from 6.8.2014, which clearly outline the requirement of pre-deposit for appeals. The Tribunal emphasized that being a creation of the Act, CESTAT must adhere to the statutory provisions, as established by precedents and legal principles.

5. Final Decision:
In conclusion, the Tribunal ruled that the appellant must comply with the mandatory pre-deposit requirement as per the amended Section 35F, effective from 6.8.2014. Failure to make the pre-deposit would result in the appeal not being entertained, aligning with the statutory provisions and legal precedents discussed during the analysis.

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