Pre-deposit condition for customs appeals can justify rejection when a lawful deposit order is not complied with.

A statutory right of appeal under the Customs Act was subject to pre-deposit of the duty or penalty, and the appellate authority could dispense with that requirement wholly or partly only on grounds of undue hardship. Where the authority lawfully reduced the deposit requirement and granted further opportunity, but the appellant still did not comply, rejection of the appeal for non-compliance was valid. An appeal that cannot be heard on merits until the statutory deposit condition is satisfied may not be kept pending indefinitely, and failure to meet the deposit order permits dismissal at the threshold.

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Issues: Whether an appeal under the Customs Act, 1962 could be rejected for failure to comply with the statutory requirement of deposit of the penalty pending appeal, and whether the appellate authority had discretion to waive or reduce that deposit on grounds of undue hardship.

Analysis: Section 128 conferred a right of appeal, but Section 129(1) made deposit of the duty demanded or penalty levied a condition pending the appeal. The proviso empowered the appellate authority to dispense with the deposit, wholly or partly, where deposit would cause undue hardship. The appellate authority heard the appellant on that request, reduced the amount to be deposited to half the penalty, and granted further opportunity in revision. The appellant did not comply. In that situation, the appellate authority was competent to reject the appeal for non-compliance, because an appeal that cannot be heard on merits until the statutory condition is satisfied cannot be kept pending indefinitely.

Conclusion: The rejection of the appeal for non-compliance with Section 129 was valid, and the challenge to that order failed.

Ratio Decidendi: Where a statute makes pre-deposit a condition for hearing an appeal, failure to comply with the deposit requirement or with a lawful order made under the proviso permits rejection of the appeal for non-compliance, even if the power of waiver is discretionary and intended to mitigate undue hardship.

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