Mandatory pre deposit

[phaniraju konidena]

Dear Experts,

Our rebate claim against exports has been rejected by the adjudicating authority. The appeal has to be submitted to the Commissioner (Appeals). In this instance, is it required to make mandatory pre-deposit of 7.5% ? Kindly clarify with authority.

Padmaja

[Rajagopalan Ranganathan]

Sir,

By rejecting your rebate claim the Department has retained the money claimed by you as rebate. This cannot be construed as confirming a demand against you along with interest and imposition of penalty. For filing appeal to Commissioner (Appeals) you need not make any pre-deposit. Even if it is assumed that you have to make a pre-deposit , you have to deposit 7.5% of 0 (the amount sanctioned to you as rebate. 7.5% of 0 is 0 and therefore you need not make any pre-deposit. This is my opinion.

[KASTURI SETHI]

Refund order or rebate order (whether rejected or sanctioned), is also adjudication order. It is to be treated as Order-in-original. Regarding requirement of pre-deposit in this case, I support the views of both experts.

[Ganeshan Kalyani]

Pre-deposit is required to be made @ certain percentage to be calculated on demand amount . since there is no demand amount then apparently no pre-deposit becomes payable . I agree with the views expressed by Sri Rajagopalan Sir, Sri Mariappan Sir and Sri Kasturi Sir. Thanks.

[Suryanarayana Sathineni]

Dear Friend,

As rightly held by the experts, pre-deposit is not required to be made related to refund & rebates since there is no demand involved .

You may please refer the Allahabad HC decision on this issue in the below given citation

2014 (4) TMI 845 - ALLAHABAD HIGH COURT

Best Regards

Suryanaryana

[KASTURI SETHI]

Sh.Suryanaryana Ji,

I want TMI citation.

[Suryanarayana Sathineni]

Dear Sethi Ji,

Happy to see you on board after a long gap.

I will try to track the TMI citation and provide the link at the earliest.

AI Summary

Pre-deposit obligation absent where rebate or refund denial yields no demand; appeal to Commissioner proceeds without deposit.
When a rebate or refund claim is rejected without a quantified demand, the Department's retention of the claimed amount does not constitute a confirmed demand attracting a pre-deposit; therefore the statutory percentage pre-deposit computed on a nil demand is nil and no pre-deposit is payable when appealing to the Commissioner (Appeals).