Dismissal of Petition Seeking Waiver of Pre-Deposit for Customs Appeal.
06 December 2024
Custom Duty >> Tax Laws
The Petitioners in the matter of Lalit Kulthia and Another Vs Commissioner of Customs (Appeals), Mumbai & Others sought directions to the Commissioner of Customs (Appeals) to admit their appeal without requiring a pre-deposit, as mandated by Section 129E of the Customs Act, 1962, and to restore their appeal which had been dismissed due to failure to make the pre-deposit.
Ms. Soni, representing the Petitioners, argued that the penalty imposed on the gold was unjustified, as only one of the 12 bars had foreign markings, and there were issues with the gold's purity. She further cited previous court cases to support her request for a waiver of the pre-deposit requirement. However, the Court found that the Petitioners' arguments regarding the merits of the case were not convincing and noted that the statutory requirement of a pre-deposit could not be waived by the court under Article 226 of the Constitution.
The Court referred to the Supreme Court's ruling in Kotak Mahindra Bank Pvt Ltd. v. Ambuj A Kasliwal and other precedents, asserting that the High Court could not override mandatory statutory provisions. It also emphasized that the Petitioners had previously been informed about the pre-deposit requirement in an earlier writ petition. Consequently, the Petition was dismissed, with the Court rejecting the request for waiver of the pre-deposit.
Section 129E, Customs Act - 1962
Section 226, Constitution of India - 1950