Tribunal has no power to direct pre-deposit while remanding a case - logically question of deposit does not arise unless there is an adjudication - HC
THE Telangana and AP High Court recently ruled that the CESTAT has no inherent power to order pre-deposit while remanding a case to meet the ends of justice.
In this case, the CESTAT remanded the case to the Commissioner, but directed the party to deposit an amount of Rs. 5 Crores. The Tribunal had observed, "even if the appeal has to be remanded it cannot be remanded without considering the balance of convenience and justice to the public at large and the Government. In our opinion, having retained the money for more than 5 years, the appellant should deposit at least amount which we have found prima facie payable with a small portion of the interest that is payable if the matter is remanded. Normally the matter should be remanded after noting compliance but to avoid further lapse of time, we consider that it would serve the interest of justice and public interest if the matter is sent back at this stage itself. Therefore the appellant is directed to deposit an amount of Rs. 5 crores within 12 weeks and report compliance before the Commissioner."
The assessee is in appeal before the High Court.
The High Court observed,
1. The Tribunal does not have any inherent power like Civil Court to pass appropriate order for the ends of justice.
2. The Tribunal is a creature of a Statute with specific powers mentioned in the Statute itself.
3. From the grounds of the appeal and the Statute, we do not find any provision for depositing Rs.5 crores for adjudication and the same is without jurisdiction.
4. In any event, logically question of deposit does not arise unless there is an adjudication to suffer with the liability of the appellant.
So, the High Court deleted the order of deposit of pre-deposit and directed the Commissioner to adjudicate the matter without any deposit.