Mandatory pre-deposit under customs law cannot be satisfied by an unencashed bank guarantee for provisional release.

An unencashed bank guarantee furnished for provisional release cannot satisfy the mandatory pre-deposit required for admission of an appeal under Section 129E of the Customs Act, 1962. The statutory deposit must be made before the appeal is entertained, and a guarantee that has not been invoked or encashed does not amount to compliance. Reliance on a circular concerning amounts paid during investigation was held inapplicable because the present matter involved only a bank guarantee, while the cited authorities were distinguished on the basis that the guarantees there had already been encashed. The Registry's objection was upheld, and the appeal could not proceed without the prescribed pre-deposit.

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Issues: Whether the bank guarantee furnished at the stage of provisional release, or the amount allegedly paid during investigation, could be treated as compliance with the mandatory pre-deposit requirement for filing the appeal under Section 129E of the Customs Act, 1962.

Analysis: The Tribunal held that pre-deposit under Section 129E must be made before the appeal is entertained and that the statutory requirement cannot be satisfied merely by referring to an unencashed bank guarantee. The Circular relied upon by the appellant was found inapplicable because it concerns amounts paid during investigation, whereas the present case involved only a bank guarantee furnished under the provisional release order. The cited decisions were distinguished on the ground that, in those matters, the bank guarantee had already been encashed, whereas here the Department had refused to encash it and the liability itself remained disputed.

Conclusion: The appellant was held bound to make the mandatory pre-deposit under Section 129E of the Customs Act, 1962, and the objection raised by the Registry was upheld.

Final Conclusion: Compliance with the statutory pre-deposit requirement was insisted upon before the appeal could be admitted for hearing on merits.

Ratio Decidendi: An unencashed bank guarantee furnished for provisional release cannot, by itself, be treated as satisfaction of the mandatory pre-deposit required for admission of an appeal under Section 129E of the Customs Act, 1962.

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