Section 129E of The Customs Act,1962
2[129E. Deposit of certain percentage of duty demanded or penalty imposed before filing appeal.--The Tribunal or the Commissioner (Appeals), as the case may be, shall not entertain any appeal,--
- (i)under sub-section (1) of section 128, unless the appellant has deposited seven and a half per cent. of the duty, in case where duty or duty and penalty are in dispute, or penalty, where such penalty is in dispute, in pursuance of a decision or an order passed by an officer of customs lower in rank than the 1 [Principal Commissioner of Customs or Commissioner of Customs];
- (ii)against the decision or order referred to in clause (a) of sub-section (1) of section 129A, unless the appellant has deposited seven and a half per cent. of the duty, in case where duty or duty and penalty are in dispute, or penalty, where such penalty is in dispute, in pursuance of the decision or order appealed against;
- (iii)against the decision or order referred to in clause (b) of sub-section (1) of section 129A, unless the appellant has deposited ten per cent. of the duty, in case where duty or duty and penalty are in dispute, or penalty, where such penalty is in dispute, in pursuance of the decision or order appealed against: Provided that the amount required to be deposited under this section shall not exceed rupees ten rores: Provided further that the provisions of this section shall not apply to the stay applications and appeals pending before any appellate authority prior to the commencement of the Finance (No. 2) Act, 2014 (25 of 2014).]
Summary
- An appellant must deposit a mandatory percentage of the disputed duty or penalty before their appeal can be entertained by appellate authorities.
- To appeal to the Commissioner (Appeals) against a decision by an officer lower than a Commissioner, the appellant must deposit seven and a half percent of the disputed amount.
- To appeal to the Appellate Tribunal against a decision directly passed by a Principal Commissioner, the appellant must deposit seven and a half percent of the disputed amount.
- To appeal to the Appellate Tribunal against an order passed by the Commissioner (Appeals), the appellant must deposit ten percent of the disputed amount.
- The total amount required to be deposited as a pre-deposit under this provision is capped at a maximum of ten crore rupees.
- This mandatory pre-deposit requirement does not apply to stay applications and appeals that were already pending before August 2014.
Practical examples
FAQ
1. What percentage must be deposited for an appeal to the Commissioner (Appeals) under Section 129E of The Customs Act,1962?
Under Section 129E of The Customs Act,1962, the appellant must deposit seven and a half percent of the disputed duty or penalty.
2. Is there a maximum cap on the pre-deposit amount under Section 129E of The Customs Act,1962?
Yes, under Section 129E of The Customs Act,1962, the maximum pre-deposit required cannot exceed ten crore rupees.
3. What is the deposit rate when appealing to the Appellate Tribunal against a Commissioner (Appeals) order under Section 129E of The Customs Act,1962?
Under Section 129E of The Customs Act,1962, the pre-deposit rate is ten percent of the disputed duty or penalty.
4. What happens if an appellant fails to make the pre-deposit under Section 129E of The Customs Act,1962?
Under Section 129E of The Customs Act,1962, the appellate authority will not entertain the appeal if the mandatory percentage is not deposited.
Test yourself
Q1.Under Section 129E of The Customs Act,1962, what percentage of the disputed duty must be deposited before filing an appeal to the Appellate Tribunal against a direct order of a Principal Commissioner?
Q2.What is the absolute statutory cap on the pre-deposit amount required under Section 129E of The Customs Act,1962?
Q3.If an importer wants to appeal to the Appellate Tribunal against an order passed by the Commissioner (Appeals), what percentage of disputed penalty must be deposited under Section 129E of The Customs Act,1962?
Q4.Under Section 129E of The Customs Act,1962, how is the pre-deposit calculated if both duty and penalty are in dispute in an appeal?