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2018 (7) TMI 281 - HC - CustomsMaintainability of appeal - quantum of mandatory pre-deposit - consideration of amount deposited during investigation - Section 129E of the Customs Act, 1962 - Held that - Appellants- Assessee has dragged the matter in the litigation about the stay application itself filed before the learned Tribunal for unduly long period and for the reasons best known to the Appellants-Assessee, the correct legal position of amendment of law with effect from 6.8.2014 as well as CBEC Instructions issued on 16.09.2014 were not brought to the notice of the learned Tribunal for making a request with regard to taking into account the deposits already made by the Assessee during the investigation and assessment period in question. The provisions of Section 130 of the Act as were applicable for the person who files an appeal in this Court requires existence of a substantial question of law for maintaining such appeal before this Court - there are no such substantial question of law to be arising in the present case, because not only the present appeal has been filed in the second round of litigation by the Appellants- Assessee, but essentially the Appeal arises out of an interlocutory order passed by the learned Tribunal initially on 20.03.2013 and again on 11.02.2016 rejecting the Miscellaneous Application filed by the Appellants-Assessee - appeal dismissed.
Issues:
Appeal against rejection of Miscellaneous Application by Customs, Excise and Service Tax Appellate Tribunal - Interpretation of amended provisions of Section 129E of the Customs Act, 1962 - Compliance with pre-deposit requirement - Consideration of CBEC Instructions dated 16.09.2014 - Existence of substantial question of law for maintaining appeal before High Court. Analysis: The Appeals were filed by the Assessee against the rejection of the Miscellaneous Application by the Customs, Excise and Service Tax Appellate Tribunal. The Assessee sought to have their Appeal entertained based on the amended provisions of Section 129E of the Customs Act, 1962, which required a 10% pre-deposit of the disputed custom duty amount. Despite previous orders reducing the pre-deposit amount, the Assessee persisted in approaching the Tribunal and the High Court. The Assessee failed to mention the amendment of Section 129E in the Miscellaneous Application filed on 29.09.2014, and the CBEC Instructions dated 16.09.2014 were not brought to the notice of the Tribunal initially. The Tribunal, in its Order on 11.02.2016, noted that the CBEC Instructions were not presented by either party but considered the Assessee's submission that their 7.5% deposit of a reduced amount should suffice for compliance. The Tribunal rejected this request, leading to the Assessee's Appeal before the High Court. The Assessee's counsel argued for considering the CBEC Instructions regarding deposits made during investigation and assessment, in line with the amended provisions of Section 129E. After hearing both parties, the High Court observed that the Assessee had prolonged the litigation unnecessarily by not informing the Tribunal about the legal amendments and CBEC Instructions. The Court noted the repeated approaches to different forums and the lack of substantial legal questions in the case. The Appeals were dismissed, with the Court emphasizing the need for compliance with pre-deposit requirements and leaving it open for the Assessee to seek further directions from the Tribunal. In conclusion, the High Court dismissed the Appeals, highlighting the importance of timely compliance with legal requirements and the lack of substantial legal questions in the case. The Assessee was advised to address the pre-deposit issue directly with the Tribunal for further guidance.
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