COMMISSIONER OF CUSTOMS Vs. UNITED TELECOM LTD

JUDGEMENT

(1.) THE Customs, Excise and Service Tax Appellate Tribunal (for short, Tribunal), is a statutory tribunal which normally functions as a second appellate authority under the provisions of Section 129 of the Customs Act, 1962, under Section 35b of the Central Excise Act, 1944 as also under the provisions of the Finance Act, 1994. The number of appeals that come up before such a tribunal are quite numerous arising under the said three enactments and the statutory requirement to maintain an appeal before the tribunal can be found in terms of Section 129e of the Customs Act, 1962 and the corresponding provisions under the other two enactments.

(2.) THIS is a provision where under the legislature has made it a norm that the amount disputed in the appeal should be deposited pending disposal of the appeal and the first proviso to this section reduces the rigor of such insistence by allowing the discretion in favour of the Tribunal to dispense with the deposit to any extent if the tribunal is of the opinion that the requirement of deposit of the amount would cause undue hardship to such a person and the discretion is made subject to the tribunal ensuring to safeguard the interest of the revenue by imposing commensurate conditions on the appellant depending upon the facts and circumstances of the case.

(3.) SECTION 129e of the Customs Act, 1962 reads as under: 129e. Deposit pending appeal of (duty and interest) demanded or penalty levied: where in any appeal under this Chapter, the decision or order appealed against relates to any (duty and interest) demanded in respect of goods which are not under the control of the customs authorities or any penalty levied under this Act, the person desirous of appealing against such decision or order shall, pending the appeal deposit with the proper officer the (duty and interest)demanded or the penalty levied. PROVIDED that where in any particular case, the Commissioner (Appeals) or the Appellate tribunal is of opinion that the deposit of (duty and interest) demanded or penally levied would cause undue hardship to such person, the Commissioner (Appeals) or, as the case may be, the appellate Tribunal may dispense with such deposit subject to such conditions as he or it may deem fit to impose so as to safeguard the interests of revenue. PROVIDED FURTHER that where an application is filed before the Commissioner (Appeals)for dispensing with the deposit of duty and interest demanded or penalty levied under the first proviso, the Commissioner (Appeals) shall, where it is possible to do so, decide such application within thirty days from the date of its filing.