Court Directs Petitioners to Approach CESTAT for Resolution of Grievances
In a significant ruling, the Delhi High Court has reinforced the mandatory nature of the pre-deposit requirement under Section 129E of the Customs Act, 1962. The court, presided over by Justices Anil Kshetarpal and Shail Jain, directed petitioners to seek redressal through the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) for their grievances against the customs authorities.
The case, involving Amar Singh and Sons Tree Nuts LLP along with other petitioners, challenged the March 25, 2026 order mandating a pre-deposit for maintaining an appeal before CESTAT. The petitioners sought a waiver or reduction of this pre-deposit requirement, arguing that it imposed an undue financial burden.
However, the court dismissed the petitions, emphasizing the statutory obligation of a 7.5% pre-deposit as specified in Section 129E. The bench stated that the language of the statute is unequivocal and does not allow for any discretion or waiver concerning the pre-deposit.
The petitioners contended that they were being penalized twice for the same investigation, a matter they believed warranted judicial intervention. The court, while acknowledging the petitioners' concerns, advised that CESTAT is the appropriate forum to examine and adjudicate such claims.
The ruling highlights the judiciary's adherence to legislative intent and statutory mandates, reinforcing the procedural requirements for appeals under the Customs Act. The court's decision underscores the importance of following prescribed statutory remedies before seeking judicial intervention.
Bottom line:-
Customs Act, 1962 Section 129E Mandatory pre-deposit for maintaining appeal before CESTAT - Pre-deposit requirement of 7.5% is mandatory and cannot be waived or reduced as per statutory provisions - Petitioner directed to avail statutory remedy of appeal before CESTAT.
Statutory provision(s): Customs Act, 1962 Section 129E
