Diamond Entertainment Technologies Pvt. Ltd Vs Commissioner Central Goods And Service Tax (Delhi High Court)
New Delhi: The Delhi High Court has dismissed a writ petition seeking a waiver of the mandatory pre-deposit required to file an appeal before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT). The court, in the case of Diamond Entertainment Technologies Pvt. Ltd Vs Commissioner Central Goods And Service Tax, reiterated that the amended provisions of Section 35F of the Central Excise Act, 1944, effective from August 6, 2014, mandate a pre-deposit of a specified percentage of the disputed duty or penalty, and courts cannot grant a waiver beyond what the statute permits.
The petitioner, Diamond Entertainment Technologies Pvt. Ltd., had filed an appeal before CESTAT, Delhi, challenging an order dated February 23, 2018, passed by the Commissioner, Central Excise Goods and Services Tax, Dehradun. Under Section 35F of the Central Excise Act, as amended, an appellant is required to deposit 7.5% of the duty demanded to entertain the appeal. The petitioner sought a writ of mandamus directing CESTAT to entertain their appeal without requiring the pre-deposit amount of Rs.56,40,646, or alternatively, to waive this pre-deposit.
The petitioner’s counsel argued that the court should waive the pre-deposit amount and direct CESTAT to hear the appeal on its merits.
