RTI Spinners Vs C.C.- Mundra (CESTAT Ahmedabad)
The case concerns an appeal by RTI Spinners (Appellant 1) and Shri Sushil Ratanlal Garg (Appellant 2) against a decision made by the Commissioner (Appeals) regarding the mandatory pre-deposit requirements under Section 129E of the Customs Act, 1962. Both appellants challenged the rejection of their appeals due to non-compliance with the 7.5% pre-deposit condition. The appellants argued that they had already deposited Rs. 7,81,861 during the investigation stage, which should count toward the required pre-deposit. However, the Commissioner (Appeals) dismissed their appeals, stating that this amount had been applied to the total customs duty and could not be counted towards the differential duty. The appellants, in their defense, referenced a CBEC Circular (984/08/2014-CE) that stipulates any deposit made during the investigation or audit should be considered when calculating the pre-deposit requirement for an appeal.
The CESTAT Ahmedabad found that the Commissioner (Appeals) had not properly considered the amount paid during the investigation. As the deposit made during the investigation stage was substantial and exceeded the required pre-deposit, the CESTAT ruled that it should be taken into account. Consequently, the matter was remanded to the Commissioner (Appeals) with the direction to consider the earlier payment of Rs. 7,81,861 towards the mandatory 7.5% deposit for RTI Spinners. For Shri Sushil Ratanlal Garg, who had not made the requisite pre-deposit, the CESTAT allowed one final opportunity to deposit the required amount. If no deposit is made, his appeal would be dismissed. The case was remanded for further proceedings and to be decided based on the merits of the appeals.
