Pre-deposit compliance controls pendency under the Kar Vivad Samadhan Scheme; a conditional remand does not revive the appeal.

Under the Central Excise pre-deposit regime, failure to comply with the statutory deposit condition meant the appeals were not treated as admitted and pending for purposes of the Kar Vivad Samadhan Scheme, 1998, so the assessees could not claim its benefit. A conditional remand order requiring prior proof of deposit did not revive the appeals or keep the dispute alive under the Scheme because the condition was not fulfilled. The operative principle is that a settlement scheme cannot be invoked where the underlying appellate proceeding has ceased to be pending due to non-compliance with the pre-deposit requirement.

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Issues: (i) Whether the dismissal of the appeals for non-compliance with the pre-deposit requirement under the Central Excise law left the appeals pending for the purpose of the Kar Vivad Samadhan Scheme, 1998. (ii) Whether the petitioners were entitled to avail the Scheme when the appellate order of remand was conditional upon prior proof of deposit of the disputed duty amount.

Issue (i): Whether the dismissal of the appeals for non-compliance with the pre-deposit requirement under the Central Excise law left the appeals pending for the purpose of the Kar Vivad Samadhan Scheme, 1998.

Analysis: The right of appeal under the excise regime is a conditional statutory right. Section 35F of the Central Excise Act, 1944 requires pre-deposit of the duty or penalty, subject to waiver only in cases of undue hardship and on conditions safeguarding revenue. Where an appeal is dismissed for failure to comply with that condition, the appeal cannot be treated as admitted and pending. The expression "admitted and pending" in the Scheme was held to require compliance with the statutory pre-deposit requirement or a subsisting appellate proceeding.

Conclusion: The appeals were not pending within the meaning of the Scheme and the petitioners could not claim its benefit.

Issue (ii): Whether the petitioners were entitled to avail the Scheme when the appellate order of remand was conditional upon prior proof of deposit of the disputed duty amount.

Analysis: The Tribunal's remand was expressly made subject to showing prior pre-deposit of the disputed duty amount. The Court treated that order as operating only upon fulfilment of the stated condition. Since the condition was not satisfied, the remand did not revive the appeals or keep the matter alive for declaration under the Scheme. The clarification relied upon by the petitioners was held inapplicable to a case where the appeal had already been dismissed for breach of the pre-deposit condition and the conditional remand had not taken effect.

Conclusion: The petitioners were not entitled to invoke the Scheme on the basis of the conditional remand order.

Final Conclusion: The petitions failed because the statutory pre-deposit condition was not complied with and the proceedings were not pending for purposes of the Scheme.

Ratio Decidendi: In revenue appeals governed by a pre-deposit condition, non-compliance with the statutory deposit requirement prevents the appeal from being treated as pending, and a conditional remand does not confer entitlement under a settlement scheme unless the condition is first fulfilled.

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