Appeal to CESTAT - Mandatory Pre-deposit - CBEC Instructions
EFFECTIVE from 6.8.2014, not after:. CBEC in Circular No dated 16th September, 2014 had clarified that amended provisions apply to appeals filed after 6th August, 2014. Sections 35F of the Central Excise Act, 1944 and Section 129E of the Customs Act, 1962 contain specific saving clause to state that all pending appeals/stay applications filed till the enactment of the Finance Bill shall be governed by the erstwhile provisions.
Now, CBEC clarifies that An Act of Parliament comes in to effect on the date it received the assent of the President of India. Hence, the amended provisions regarding filing of appeal along with stipulated percentage of pre-deposit shall apply to all appeals filed on or after 6th August, 2014.
Record of Pre-deposit to be made by Commissioners: Para 7.2 of the Circular stipulated that Commissioners should maintain record of deposits made under Section 35F of the Central Excise Act, 1944 or section 129E of the Customs Act, 1962 so as to facilitate seamless verification of the deposits at the time of processing the refund claims made in case of favourable order from the Appellate Authority . In order to maintain uniformity in the database being maintained, CBEC has suggested a model register.
Pre-deposit in cases of demand of erroneous drawback granted: Board has received several representations stating that some Commissioners (Appeals) have been insisting on pre-deposit in cases of demand of erroneous drawback granted. It has been represented that drawback is not a duty and hence the amended provisions would not apply to such cases. Board clarifies: Drawback, like rebate in Central Excise, is refund of duty suffered on the export goods. Section 129E stipulates that appellant filing appeal before the Commissioner (Appeals) shall pay 7.5% of the duty demanded where duty and penalty are in dispute. Accordingly, it is clarified that mandatory pre-deposit would be payable in cases of demand of drawback as the new section 129E would apply to such cases.
No pre-deposit for appeal to Joint Secretary (Revision Authority): Board clarifies: The ambit of the Section 129E of the Customs Act, 1962 in the legislation does not extend to appeals under section 129DD before Joint Secretary (Revision Application). Therefore, while mandatory pre-deposit would be required to be paid in cases of drawback, rebate and baggage at the first stage appeal before Commissioner (Appeals), no pre-deposit would be payable in such cases while filing appeal before the JS(RA).
CBEC Circular No. 993/17/2014-CX., Dated: January 05, 2015