2020 (9) TMI 351 - HC - Customs

Maintainability of appeal - appeal has been dismissed on account of non-compliance of mandatory Pre-deposit - Section 129(E) of the Customs Act, 1962 - HELD THAT - This Court after hearing learned counsel for the parties at length is of the considered opinion that the appellate authority was justified in dismissing the appeal on account of non-deposit of mandatory pre-deposit. This Court does not find any reason to interfere with the order passed by the appellate authority, however, it is made clear that in case, the mandatory pre-deposit is made within 30 days from today, the appellate authority shall decide the appeal on merits in accordance with law.

Summary

Issues Involved:
Appeal against dismissal of appeal due to non-compliance of mandatory pre-deposit under Section 129E of the Customs Act, 1962.

Analysis:
The High Court of Madhya Pradesh heard a petition filed by the petitioner challenging the dismissal of their appeal dated 06/03/2020 and 15/07/2020 by the appellate authority. The petitioner had appealed against the order passed by the Joint Commissioner, CGST & Customs, Indore, which was dismissed due to non-compliance with the mandatory pre-deposit requirement under Section 129E of the Customs Act, 1962. Section 129E mandates that pending an appeal relating to duty, interest, or penalty, the appellant must deposit the demanded duty, interest, or penalty. The Court, after considering arguments from both parties, upheld the decision of the appellate authority to dismiss the appeal based on the non-deposit of the mandatory pre-deposit.

The Court cited a previous judgment in Writ petition No.17662/2019 (Sanjay Kundra Vs. Union of India and Others) decided on 02/12/2019, where a similar view was taken regarding the mandatory pre-deposit requirement. The Court found no reason to interfere with the order of the appellate authority but provided an opportunity for the petitioner to make the mandatory pre-deposit within 30 days. It was clarified that if the pre-deposit is made within the specified time frame, the appellate authority would then proceed to decide the appeal on its merits in accordance with the law. The Court directed the issuance of a certified copy of the order as per the rules.

In conclusion, the High Court of Madhya Pradesh upheld the dismissal of the petitioner's appeal due to non-compliance with the mandatory pre-deposit requirement under Section 129E of the Customs Act, 1962. The Court provided an opportunity for the petitioner to rectify the non-compliance by making the mandatory pre-deposit within 30 days, after which the appellate authority would proceed to decide the appeal on its merits.