CESTAT dismisses appeal for failing mandatory pre-deposit under section 129E after 2014 amendment removed waiver powers

CESTAT New Delhi dismissed the appeal for non-compliance with mandatory pre-deposit requirements under section 129E of the Customs Act. The court held that post-amendment on 6.8.2014, neither the Tribunal nor Commissioner (Appeals) possess power to waive pre-deposit requirements, unlike the pre-amendment provision that allowed waiver in cases of undue hardship. Since the appellant failed to make the required pre-deposit, the appeal was dismissed for non-compliance with statutory mandatory requirements.

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Issues Involved:
1. Pre-deposit requirement u/s 129E of the Customs Act.
2. Non-compliance with the mandatory pre-deposit requirement.
3. Legal precedents on the mandatory nature of pre-deposit.

Summary:

Pre-deposit requirement u/s 129E of the Customs Act:

The Tribunal noted that the appellant had not made the pre-deposit required u/s 129E of the Customs Act, as amended on 06.08.2014. The relevant section mandates that an appeal cannot be entertained unless the appellant deposits a specified percentage of the duty or penalty. The Tribunal highlighted that post-amendment, neither the Tribunal nor the Commissioner (Appeals) has the power to waive this requirement, unlike the previous regime where discretion was available.

Non-compliance with the mandatory pre-deposit requirement:

The appellant failed to comply with the pre-deposit requirement despite being granted six weeks to do so. The Tribunal emphasized that the appellant had not received any instructions to make the pre-deposit, leading to non-compliance with the statutory mandate.

Legal precedents on the mandatory nature of pre-deposit:

The Tribunal referred to several Supreme Court and High Court judgments to reinforce the mandatory nature of the pre-deposit requirement. The Supreme Court in Narayan Chandra Ghosh vs. UCO Bank and Others and Kotak Mahindra Bank Pvt. Limited vs. Ambuj A. Kasiwal & Ors held that conditions for filing an appeal, such as pre-deposit, are mandatory and cannot be waived. The Delhi High Court in Dish TV India Limited vs. Union of India & Ors and M/s Vish Wind Infrastructure LLP v/s Additional Director General (Adjudication) also affirmed that courts cannot waive the mandatory pre-deposit requirement stipulated by the statute.

Conclusion:

Given the appellant's failure to make the mandatory pre-deposit and the settled legal position on the issue, the Tribunal dismissed the appeal for non-compliance with the statutory requirement.

(Order dictated and pronounced in the open Court)

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