Pre-deposit payment at Tribunal Appeal

[Asked by Guest]

Dear Sir,

Please clarify if we had paid pre-deposit of 7.5% at Commissioner (Appeals) then is it require to pay full 10% of duty demanded as pre-deposit at Tribunal (Appeals) against Commissioner order (Appeals) or 2.5% is sufficient.Please explain ,thanks and regards.

[YAGAY and SUN]

Dear Sandesh,

Please check the following link for clarification.

https://www.taxtmi.com/article/detailed?id=5835

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Sachin Sharma]

If appeal is filed before commissioner appeal then 7.5% pre-deposit would would be mandatory. subsequently if appeal is in favor of assessee then assessee would get refund for the same and if its against than assessee would be left with the option of filing of appeal in tribunal, in such case assessee would be required to pay 10% including all payments made in this regard not even appeal but also payment made during audit or investigation. Only short amount which is less than 10 % portion would be payable. (10% - 7.5% =2.5%).

[Mahir S]

Yes, in your case only 2.5 % is required to be paid, as 7.5 % already deposited with Commissioner (Appeals), as explained above.

[Ravi Kumar Somani]

Please find attached link to the recent clarification issued by the department in this regard.

http://cbec.gov.in/excise/cx-circulars/cx-circ14/984-2014cx.htm

AI Summary

Pre-deposit obligation: additional shortfall may be payable when escalating appeals to higher tribunals after prior deposits.
Where a pre-deposit was paid at Commissioner (Appeals), the Tribunal-stage requirement is assessed on the aggregate pre-deposit; amounts already deposited are credited and only the shortfall between prior deposits and the total pre-deposit required for Tribunal appeal is payable. Payments made during audit or investigation are included in this aggregation, and deposits refunded when an earlier appeal succeeds remain part of the accounting for the Tribunal-stage pre-deposit obligation.