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

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).