Pre-deposit payment at Tribunal Appeal

[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 andSUN]

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

Clarification: Only 2.5% additional pre-deposit is needed at Tribunal level after 7.5% paid at Commissioner Appeals. A user inquired whether a 10% pre-deposit is required at the Tribunal level if a 7.5% pre-deposit was already made at the Commissioner (Appeals) level. Responses clarified that if an appeal is filed at the Tribunal after an unfavorable decision at the Commissioner level, only the remaining 2.5% needs to be paid, since the initial 7.5% already covers part of the required amount. Additional resources and links were provided for further clarification on the matter.