Mandatory pre-deposit through Form DRC-03 accepted where later circular applied only prospectively.

Mandatory pre-deposit under the GST regime was treated as capable of being made through Form DRC-03 for purposes of Section 83 of the Finance Act, 1994 read with Section 35F of the Central Excise Act, 1944. The later departmental circular dated 28.10.2022 was considered prospective only, because it came into force after the appeal had already been filed. On that basis, the objection that payment through Form DRC-03 was not a valid mode of pre-deposit was rejected, and the deposit was accepted as valid for the present appeal.

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Issues: Whether the mandatory pre-deposit could validly be made through Form DRC-03 under the GST regime for the purpose of Section 83 of the Finance Act, 1994 read with Section 35F of the Central Excise Act, 1944, and whether the departmental circular relied upon could be applied retrospectively.

Analysis: The Tribunal treated the controversy as settled by the later decision of the Bombay High Court holding that the circular dated 28.10.2022 operated only prospectively because it came into force after the appeal had already been filed. On that basis, the objection that payment through Form DRC-03 was not a valid mode of mandatory pre-deposit was held unsustainable.

Outcome: The departmental objection was overruled and the payment made through Form DRC-03 was accepted as a valid mandatory pre-deposit for the present appeal.

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