Pre-deposit condition in tax appeal reduced after the court declined to decide duty incidence at the threshold.

In a tax appeal, the court modified the Tribunal's pre-deposit condition after noting that it was not appropriate to decide the disputed issue of duty incidence at that stage and that there was no material then available to show the duty had been passed on to consumers. Considering the totality of circumstances, the required deposit for hearing the appeal was reduced from Rs. 40,00,000 to Rs. 30,00,000, and the Tribunal was directed to hear and dispose of the appeal after compliance with that revised condition.

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Issues: Whether the pre-deposit of Rs. 40,00,000 ordered as a condition for hearing the appeal should be reduced.

Analysis: The petitioner sought interference with the Tribunal's direction requiring deposit of Rs. 40,00,000 as a pre-condition for entertaining the appeal. The Court noted that it was not appropriate at that stage to enter into the factual controversy on duty incidence, and found no material then available to satisfy itself that the duty had in fact been passed on to consumers. Taking the totality of circumstances into account, the Court considered it to modify the deposit condition.

Conclusion: The pre-deposit requirement was reduced from Rs. 40,00,000 to Rs. 30,00,000, and upon such deposit the appeal was to be heard and disposed of by the Tribunal.

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