Appeals to Comm (Appeals)

[Shama Sarin]

Please advise that if my assessee files an appeal to Comm(Appeals) Excise against the order of Asst Comm, do we need to pay the tax+interest+penalty amount before appeal to him?....If no then if i will lose the case will my assessee be forced to pay the whole penalty or 25% at that time?

[Sucheta Agrawal]

Dear Mr. Sharma,

In ny view, first there is no need to submit any payment until the commissioner (Appeal) order direct to pay the tax, if u have confidence that the case is in your favour but if u have doubt then you can submit only tax and interest because penalty can be waived if bonafide mistake apperrant.   

AI Summary

Payment requirement on appeal: do not prepay tax and interest unless ordered; penalty may be waived.
There is generally no requirement to prepay tax, interest or penalty before filing an appeal to the Commissioner (Appeals); payment need be made only if the Commissioner directs. If there is doubt about success on appeal, remitting tax and interest while contesting penalty is a practical option because penalty may be waived where a bonafide mistake is apparent.