Pre-Deposit Paid for First Appeal Adjustable on Filing Second Appeal before Tribunal: CESTAT [Read Circular]

The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), last week issued circular clarifying that there is no requirement of 10% pre-deposit in addition to 7.5% already made with Commissioner (Appeals) while filing second appeal before the CESTAT.

The Delhi High court, recently in M/s Santani Sales Organization Vs CESTAT, Delhi & Ors held that there is no need to make separate payment of 7.5% and 10%  as pre-deposit for First and Second appeal in case of customs, excise and service tax matters.

The bench further quashed the circular dated 27th April, 2017 issued by the Delhi CESTAT and held that “It is directed that the petitioner and others on filing the second appeal before the Tribunal are required to deposit 10% of the amount of duty/ penalty as confirmed by the first appellate authority inclusive of 7.5% pre-deposit made for the first appeal. 10% would not be in addition to and over and above 7.5% of pre-deposit made for the first appeal,”

“Therefore, in compliance of the above directions of the Hon’ble High Court of Delhi, the Circular dated 27.04.2017 stands rescinded and all the concerned are hereby directed to ensure strict compliance of the said order of the Hon’ble High Court of Delhi,” the circular said.