Tribunal Allows Appeal Without Additional Pre-Deposit

The Tribunal set aside the Commissioner (Appeals) order and remanded the matter for a decision on merits without requiring additional pre-deposit. The Tribunal held that the appellant's payment towards the tax demand should have been considered as fulfilling the mandatory pre-deposit requirement, allowing the appeal to proceed for consideration on its merits.

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Issues:
Appeal against dismissal for non-compliance of pre-deposit under Section 35F of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994.

Analysis:
The appellant challenged the order of the Commissioner (Appeals) dismissing the appeal due to non-compliance with the mandatory pre-deposit requirement. The appellant had opted for the Sabka Vishwas Scheme, 2019, and paid an amount of Rs. 5,74,103 towards settlement under the scheme. However, the payment was made after the scheme's deadline, leading to the rejection of the appeal by the Commissioner (Appeals). The appellant argued that the amount paid should be considered as part of the mandatory pre-deposit, allowing the appeal to be considered on merits. The Commissioner (Appeals) noted the payment but held that it did not fulfill the pre-deposit requirement. The Tribunal disagreed, stating that the payment made by the appellant should be considered as compliance with the pre-deposit, especially since it exceeded 7.5% of the total tax demand as required under Section 35F of the Central Excise Act. The Tribunal held that the Commissioner (Appeals) erred in not considering the payment towards the pre-deposit and remanded the matter to decide the case on merits without insisting on any further pre-deposit.

Conclusion:
The Tribunal set aside the Commissioner (Appeals) order and remanded the matter for a decision on merits without requiring additional pre-deposit. The Tribunal held that the appellant's payment towards the tax demand should have been considered as fulfilling the mandatory pre-deposit requirement, allowing the appeal to proceed for consideration on its merits.

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