Electronic credit ledger debit through DRC-03 can validly satisfy pre-deposit requirements under Section 35F before 28.10.2022.

Debit in the electronic credit ledger through DRC-03 made before 28.10.2022 satisfies the pre-deposit requirement under Section 35F of the Central Excise Act, 1944. On that basis, a 7.5% pre-deposit made from the electronic credit ledger was treated as valid compliance, and the rejection of the appeal as non-maintainable for want of pre-deposit could not stand. The matter was therefore sent back for decision on merits after acceptance of the pre-deposit compliance.

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Issues: Whether the pre-deposit required under Section 35F of the Central Excise Act, 1944 was validly made through debit in the electronic credit ledger using DRC-03 before 28.10.2022, and whether rejection of the appeal as non-maintainable for want of pre-deposit was sustainable.

Analysis: The pre-deposit of 7.5% of the adjudged dues was made on 04.06.2021 by debit from the electronic credit ledger. The governing view applied was that such debit through DRC-03, if made before 28.10.2022, constitutes valid compliance with the requirement of Section 35F. On that basis, the earlier finding that the appeal was not maintainable for non-compliance with pre-deposit could not stand.

Conclusion: The mandatory pre-deposit was held to be validly made, and the rejection of the appeal for want of pre-deposit was set aside.

Final Conclusion: The matter was sent back for decision on merits after acceptance of the pre-deposit compliance.

Ratio Decidendi: Debit in the electronic credit ledger through DRC-03 made before 28.10.2022 satisfies the statutory requirement of pre-deposit under Section 35F of the Central Excise Act, 1944.

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