Pre-deposit requirement may be relaxed via structured instalments allowing tribunal admission on initial payment, full deposit before final order.

The text addresses relaxation of the statutory pre-deposit requirement for appellate remedy, stating that while the pre-deposit is a mandatory statutory condition, a court exercising writ jurisdiction may permit substantial compliance by framing a structured instalment payment plan where immediate full payment would render the right of appeal illusory; this balances the appellant's access to remedy with protection of revenue. Operative effect: the tribunal may admit and proceed with the appeal upon initial payment under the schedule, but final disposal is to follow only after full deposit as per the court approved instalment timetable.

---

---

Issues: Whether the statutory pre-deposit mandated by Section 129E of the Customs Act, 1962 as a condition precedent for entertaining an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) can be relaxed or permitted to be paid in installments so as to enable the appellant to have its appeal entertained.

Analysis: The Court examined the mandatory nature of the pre-deposit requirement under Section 129E of the Customs Act, 1962 and recognised that the right of appeal is subject to statutory conditions. The Court also recognised that where immediate compliance would render the right of appeal illusory because of genuine financial constraints, the High Court in exercise of its writ jurisdiction may strike a balance by permitting substantial compliance through a structured payment plan while safeguarding revenue interests. Applying these principles to the appellant's proposal filed during hearing, the Court considered the need to enable the statutory remedy to be pursued without wholly nullifying the pre-deposit mandate and framed an instalment schedule which permits the CESTAT to admit and proceed with the appeal upon initial payment while preserving the requirement of full deposit before final disposal.

Conclusion: The Court allowed the appellant relief by setting aside the impugned order and directing that CESTAT shall entertain the appeal upon deposit of Rs.2.00 Crore by the next listed date, followed by Rs.3.00 Crore within three months and the remaining Rs.5.00 Crore within a further three months; CESTAT may proceed pending full payment but shall pronounce final order only after deposit of the entire Rs.10.00 Crore. The decision is in favour of the appellant.

---