In W.P.(C) 7535/2023 -DEL HC- Delhi High Court dismisses petitioner’s contention on Pre-deposit requirement for appeal, says Pre-deposit requirement not made Appellate remedy illusory
Justice Vibhu Bakhru & Justice Amit Mahajan [29-05-2023]

Read Order: M/s Classic Decorators V. Commissioner (Appeals-I) Central Excise/GST, Delhi & Anr

Chahat Varma

New Delhi, June 14, 2023: The Delhi High Court has rejected the contention raised by M/s. Classic Decorators (petitioner) regarding the pre-deposit requirement for their appeal. The court stated that the pre-deposit amount, which was 7.5% of the total demand, was not a large sum and that there was no allegation or evidence presented that the pre-deposit requirement had made the appellate remedy illusory or hindered the petitioner from availing the same.

Brief facts of the issue were that the petitioner was aggrieved by an order, whereby its appeal against an order-in-original was not entertained for want of necessary pre-deposit. The petitioner then filed a writ petition under Article 226 of the Constitution of India, seeking relief. However, the writ petition was disposed of on the ground that the petitioner had an alternative and effective remedy available to them. The petitioner submitted that based on the observations made by the court in the previous order, the petitioner's appeal should have been entertained by the Appellate Authority without insisting on a pre-deposit.

The bench of Justice Vibhu Bakhru and Justice Amit Mahajan said, “We find no ground to interfere with the impugned order dated 04.05.2022. We clarify that if the petitioner makes the pre-deposit within a period of two weeks from today, the Appellate Authority shall consider the petitioner’s appeal on merits.”