2016 (12) TMI 198 - AT - Customs

Pre-deposit - Section 129E of the Customs Act,1962 - interpretation of statute - adjustment of amount of pre-deposit made while filing appeal befor the commissioner (appeals) - Held that - The argument cannot be accepted that, Appellant is required to deposit 2.5% and not 10% as prescribed under the said provision in view of the settled principle of statutory interpretation. The Hon ble Bombay High Court in the case of Greatship (India) Pvt. Ltd. Vs. Commissioner of Service Tax, Mumbai-I 2015 (4) TMI 1006 - BOMBAY HIGH COURT on the principle of interpretation of Taxing statutes, held that The Court interpreting the statute should not proceed to add the words which are not found in the statute. - It is equally settled that nothing is to be read in, nothing is to be implied and one is required to look fairly at the language used and nothing more and nothing less. No doubt, there are certain judgments of the Apex Court which also holds that resort to purposive construction would be permissible in certain situation. However, it has been held that the same can be done in the limited type of cases where the Court finds that the language used is so obscure which would give two different meanings, one leading to the workability of the Act and another to absurdity. I do not find substance in the argument that the amount paid under clause(i) of Sec.129E, which was paid at the time of filing Appeal before the first Appellate Authority can be adjusted against the amount of deposit required to be made under clause (iii) while filing the Appeal before this forum. In the result, the appeals are not entertained - appeal dismissed - decided against Appellant.

Summary

Issues: Interpretation of Section 129E of the Customs Act, 1962 regarding the deposit percentage required for filing an appeal before the Tribunal.

Analysis:
The judgment pertains to appeals filed against an order passed by the Commissioner of Customs (Appeals) Jamnagar. The main issue revolves around the interpretation of Section 129E of the Customs Act, 1962, specifically focusing on the deposit percentage required for entertaining an appeal before the Tribunal. The provision mandates the deposit of a certain percentage of duty demanded or penalty imposed before filing an appeal. The appellant argued that since they had deposited 7.5% at the first appellate stage, they were only required to deposit the balance 2.5% and not the entire 10% as mentioned in clause (iii) of Section 129E. On a thorough examination of the provision, the presiding member found the language to be clear and unambiguous. Clause (iii) explicitly states that 10% of the duty/penalty must be deposited for the appeal to be entertained, without room for alternative interpretations. Citing the principle of statutory interpretation, the judgment emphasized the importance of adhering to the literal meaning of taxing statutes, without introducing words not present in the statute.

Furthermore, the judgment referenced a case from the Hon'ble Bombay High Court, highlighting the principle that in taxing statutes, courts must strictly adhere to the language used without resorting to equitable or purposive constructions. The judgment emphasized that if a person falls within the letter of the law, they must be taxed accordingly, regardless of any perceived hardship. Conversely, if the subject cannot be brought within the letter of the law, they are exempt from taxation. The judgment concluded that the amount paid under a different clause of Section 129E cannot be adjusted against the deposit required under clause (iii) for filing an appeal before the Tribunal. As a result, the appeals were not entertained based on the statutory requirements outlined in the provision.

In summary, the judgment provides a detailed analysis of the statutory provision regarding the deposit percentage for filing appeals under the Customs Act, emphasizing the importance of literal interpretation in taxing statutes and rejecting alternative interpretations that deviate from the clear language of the law.