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2022 (3) TMI 458 - AT - CustomsNon-compliance with the pre-deposit - section 129E of the Customs Act 1962 - HELD THAT:- Section 129E of the Customs Act provides that the Tribunal shall not entertain any appeal unless the appellant has deposited 7.5 per cent of duty/penalty. The Customs Act does not provide for waiver of this mandatory deposit before filing appeal. The Supreme Court in NARAYAN CHANDRA GHOSH VERSUS UCO BANK [2011 (3) TMI 1478 - SUPREME COURT], examined the provisions contained in section 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 relating to pre deposit in order to avail the remedy of appeal. The provisions are similar to the provisions of section 129E of the Customs Act. The Supreme Court emphasised that when a Statue confers a right to appeal, conditions can be imposed for exercising of such a right and unless the condition precedent for filing appeal is fulfilled, the appeal cannot be entertained. The Supreme Court, therefore, held that deposit under the second proviso to section 18(1) of the Act, being a condition precedent for preferring an appeal, the Appellate Tribunal erred in law in entertaining the appeal. It will also be appropriate to refer to a decision of the Delhi High Court in DISH TV INDIA LIMITED VERSUS UNION OF INDIA AND ORS. [2020 (8) TMI 183 - DELHI HIGH COURT], wherein the requirement of pre-deposit under section 129E of the Customs Act came up for consideration. The High Court held that when the Statue itself has provided wavier of pre-deposit to the extent of 90% or 92.5% of the duty amount and has made it mandatory to deposit 7.5% or 10% of duty amount, as the case may be, the Courts cannot waive this requirement of deposit. As the statutory requirement stipulated under section 129E of the Customs Act has not been satisfied and the application for waiver of deposit has been rejected, the appeal stands dismissed.
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