TMI BlogAmendments to the Appeal provisions in Customs, Central Excise and Service Tax made by Finance Act, 2014- Issue of clarifications – reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioners (AR), New Delhi, Mumbai, Chennai, Kolkata, Bangalore Ahmadabad 7. Webmaster Sub: Amendments to the Appeal provisions in Customs, Central Excise and Service Tax made by Finance Act, 2014- Issue of clarifications reg. Sir / Madam, The Finance Act (No.2), 2014 has been enacted on 06.08.2014. Section 35F of the Central Excise Act, 1944 and Section 129E of the Customs Act, 1962 have been substituted with new sections to prescribe mandatory pre-deposit as a percentage of the duty demanded where duty demanded is in dispute or where duty demanded and penalty levied are in dispute. Where penalty alone is in dispute, the pre-deposit shall be calculated on the penalty imposed. 1.2 The amend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls) before the CESTAT. Sub-section (iii) of Section 35F of the Central Excise Act, 1944 and Section 129E of the Customs Act, 1962 stipulate payment of 10% of the duty or penalty payable in pursuance of the decision or order being appealed against i.e. the order of Commissioner (Appeal). It is, therefore, clarified that in the event of appeal against the order of Commissioner (Appeal) before the Tribunal, 10% is to be paid on the amount of duty demanded or penalty imposed by the Commissioner (Appeal). This need not be the same as the amount of duty demanded or penalty imposed in the Order-in-Original in the said case. 2.2 In a case, where penalty alone is in dispute and penalties have been imposed under different provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment or non-payment of the amount stipulated under Section 35F of the Central Excise Act, 1944 or Section 129E of the Customs Act, 1962 , the appeal filed by the appellant is liable for rejection. 4. Recovery of the Amounts during the Pendency of Appeal: 4.1 Vide Circular No.967/1/2013 dated 1st January, 2013 , Board has issued detailed instructions with regard to recovery of the amounts due to the Government during the pendency of stay applications or appeals with the appellate authority. This Circular would not apply to cases where appeal is filed after the enactment of the amended Section 35F of the Central Excise Act, 1944 or Section 129E of the Customs Act, 1962 . 4.2 No coercive measures for the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l is not payment of duty. Hence, refund of pre-deposit need not be subjected to the process of refund of duty under Section 11B of the Central Excise Act, 1944 or Section 27 of the Customs Act, 1962 . Therefore, in all cases where the appellate authority has decided the matter in favour of the appellant, refund with interest should be paid to the appellant within 15 days of the receipt of the letter of the appellant seeking refund, irrespective of whether order of the appellate authority is proposed to be challenged by the Department or not. 5.3 If the Department contemplates appeal against the order of the Commissioner (A) or the order of CESTAT, which is in favour of the appellant, refund along with interest would still be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 129E of the Customs Act, 1962 . 6.4 The appeal filed before the CESTAT are filed along with the appeal memo in prescribed format (Form EA-3 for Central Excise Appeals and Form CA-3 for the Customs Appeals). Column 14(i) of the said appeal forms seeks information of payment of duty, fine, penalty, interest along with proof of payment (challan). These columns may, therefore, be used for the purpose of indicating the amount of deposit made, which shall be verified by the appellate authority before registering the appeal. 6.5 As per existing instructions, a copy of the appeal memo along with proof of deposit made shall be filed with the jurisdictional officers. 7. Procedure for refund: 7.1 A simple letter from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner (Appeals) An appeal against this order shall lie before the Tribunal on payment of 10% of the duty demanded where duty or duty and penalty are in dispute, or penalty, where penalty alone is in dispute . 8.3 The following may be added in the preamble of the orders issued by the Commissioner as original adjudicating authority An appeal against this order shall lie before the Tribunal on payment of 7.5% of the duty demanded where duty or duty and penalty are in dispute, or penalty, where penalty alone is in dispute . 9. Receipt of the Circular may please be acknowledged. 10. Hindi version follows. (Sunil K. Sinha ) Director (Judicial Cell) - Circular - Trade Notice - Public Notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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