Lalit Kulthia & Anr Vs Commissioner of Customs (Appeals) Mumbai III & Ors (Bombay High Court)
Summary: The Bombay High Court in Lalit Kulthia & Anr. Vs Commissioner of Customs (Appeals) Mumbai III & Ors. (Writ Petition No. 476 of 2024) addressed the issue of whether a statutory pre-deposit under Section 129E of the Customs Act, 1962, can be waived. The petitioners sought a direction to admit their appeal without the mandatory pre-deposit, citing exceptional circumstances. They argued that penalties imposed on gold bars were unjustified, as only one bar had foreign markings. The Court, however, dismissed their plea, stating that such waivers can only be granted in rare and deserving cases with clear justification. It emphasized that exercising jurisdiction under Article 226 of the Constitution does not override statutory requirements.
The Hon’ble Bombay High Court in the case of Lalit Kulthia & Anr. v. Commissioner of Customs (Appeals) Mumbai III & Ors. [Writ Petitioner NO. 476 of 2024 dated December 06, 2024] held that only in rare and deserving cases where a clear justification is made out for such interference can a waiver of pre-deposit can be granted be granted.
Facts:
Mr. Lalit Kulthia & Anr. (“the Petitioners”) had instituted Writ Petition No. 2884 of 2017 before the Hon’ble Bombay High Court to challenge the Order-In-Original dated June 6, 2019 without resorting to the appellate remedy. The said Petition was disposed of by an Order dated June 06, 2019, which clarified that the Petitioners would have to satisfy other requirements for filing an appeal, including the statutory requirement of pre-deposit in terms of Section 129E of the Customs Act, 1962 (“the Customs Act”) The Petitioners never challenged the order but chose to institute an appeal without the pre-deposit.
