Circular dated 28.10.2022 prospective; Form DRC-03 GST pre-deposit valid under Section 83 and Section 35F

CESTAT CHANDIGARH - AT held that Circular dated 28.10.2022 is prospective only, following the ratio of Bombay HC, and does not apply retrospectively. Payment of the mandatory pre-deposit made via Form DRC-03 under the GST regime is valid for satisfying the pre-deposit requirement under Section 83 of the Finance Act, 1994 read with Section 35F of the Central Excise Act, 1944. The department's objection was overruled and the appeal was allowed.

---

---

Appellant's pre-deposit paid via Form DRC-03 under the GST regime was challenged as not being in the prescribed mode under Section 83 of the Finance Act, 1994 read with Section 35F of the Central Excise Act, 1944. The department relied on Circular dated 28.10.2022; appellant contended the Circular is prospective and inapplicable to appeals filed earlier. The Tribunal found the issue settled by the Bombay High Court's judgment in Commissioner of CGST & CE v. Sapphire Cable & Services Pvt Ltd (order dated 28.08.2024), reproducing: "After hearing the parties, preliminary objection by revenue was rejected because the CESTAT rightly concluded that the circular had come into force only on 28th October 2022 and the appeal had been filed much before the circular came into force. Relying upon the judgment of the Hon'ble Apex Court in Commissioner of Central Excise, Bangalore vs. M/s Maysore Electricals Industries Ltd [2006 (204) ELT 517 (SC) - 2006-VIL-57-SC-CE] the CESTAT held that the circular would apply only prospectively." Applying that ratio, the Tribunal held the pre-deposit via Form DRC-03 valid and overruled the departmental objection; appeal listed for final hearing.

---