Condition Of Pre-Deposit Duly Complied, Delhi High Court Restores Appeal On Board Of CESTAT

The Delhi High Court has held that the appeal itself may be restored on the Board of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), bearing in mind the undisputed position that the condition of pre-deposit has been duly complied with.

The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has allowed the instant writ petition and set aside the impugned order in so far as it proceeds to reject the application for restoration.

The petitioner has challenged the order passed by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT). The CESTAT dismissed its application for restoration of the statutory appeal along with costs of INR 2 lakhs.

While faced with the spectre of a pre-deposit in order to pursue its appeal, the writ petitioner had on an earlier occasion approached the Court by way of writ petitions. The writ petitions came to be disposed of by the Court with a direction to the writ petitioner to comply with the directions of pre-deposit within a period of 12 weeks.

When the matter was brought up before the CESTAT, the writ petitioner had gone unrepresented, and consequently, the CESTAT could not be informed of the deposit having been made. The CESTAT proceeded to dismiss the appeal itself, bearing in mind the peremptory directions of the writ petition.

The application for restoration was filed before the CESTAT. The application proceeded on the assertion that the directions as framed by the High Court had been duly complied with. The CESTAT was not informed of the delay that was caused in complying with the conditions of the pre-deposit as they were framed.

The petitioner contended that it was an inaccurate and incorrect stand taken in the application for restoration, which appears to have weighed upon the CESTAT to dismiss the same along with a cost of INR 2 lakhs.

The court allowed the writ petition and stated that subject to the writ petitioner depositing costs of INR 2 lakhs within a period of two weeks, the appeal shall stand restored on the Board of CESTAT to be considered on merits and in accordance with law.

Counsel For Appellant: Ramesh Singh

Counsel For Respondent: Harpreet Singh

Case Title: Ankit Madan Versus Registrar, Customs, Excise And Service Tax Appellate Tribunal & Ors.

Citation: 2024 LiveLaw (Del) 579

Case No.: W.P.(C) 6174/2024, CM APPLs. 25684/2024 & 25685/2024

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