Voluntary deposit made during investigation & appropriated against demand cannot be treated as pre-deposit & thus cannot be refunded

Sky Airways Vs Commissioner of Customs (CESTAT Delhi)

Customs Duty Paid Voluntarily During Investigation cannot be claimed as refund when CESTAT remanded the matter for a fresh adjudication

The Hon’ble Customs, Excise & Service Tax Appellate Tribunal, New Delhi (CESTAT) in the matter of Sky Airways v. Commissioner of Customs (Appeals), New Delhi [Final Order No. 50715 of 2022 dated August 12, 2022] dismissed the appeal stating that the amount deposited voluntarily during the investigation cannot not be treated as an amount towards the pre-deposit and refunded as the same was appropriated against the demand.

Facts:

Sky airways (Appellant) voluntarily deposited Rs. 3,00,82,889/- during investigation however, a show cause notice dated August 03, 2009 (SCN) was issued to the Appellant to show cause as to why Rs. 3,00,82,889/- should not be demanded.

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