M/S. Citicon Engineers LTD.,Bbsr vs. The Commissioner (Appeals), GST, Central Excise And Customs, Bbsr

Facts

The petitioner, M/s. Citicon Engineers Ltd., filed a writ petition before the High Court of Orissa challenging an order dated August 5, 2022, passed by the Commissioner (Appeals), GST, Central Excise and Customs, Bhubaneswar. The challenge was based on the petitioner's failure to make the mandatory pre-deposit required for the appeal. The petitioner's counsel informed the Court that the petitioner intended to make the mandatory pre-deposit of 7.5% of the tax amount before the Commissioner (Appeals) by April 3, 2023. The Opposite Parties are the Commissioner (Appeals) and others.

Held

The Court allowed the petitioner's application to dispense with the filing of a certified copy of Annexure-2. The Court noted the petitioner's undertaking to make the mandatory pre-deposit of 7.5% of the tax amount before the Commissioner (Appeals) by April 3, 2023. Subject to this deposit being made within the stipulated time, the impugned order of the Commissioner (Appeals) would stand set aside, and the appeal would be restored to the file of the Commissioner (Appeals) for further proceedings in accordance with law. The appeal was directed to be listed before the Commissioner (Appeals) on April 3, 2023, for directions. The writ petition was disposed of in these terms. The ratio decidendi is that substantial compliance with pre-deposit requirements, even if delayed, can lead to the restoration of an appeal, provided the appellate authority is directed to proceed with the matter.

Key Issues

1. Whether the writ petition is maintainable on the ground of failure to make pre-deposit, and if so, what is the appropriate relief? The petitioner argued that they would now comply with the pre-deposit requirement. The revenue did not record any specific arguments in the judgment. The core issue revolves around the consequence of non-compliance with pre-deposit rules and the court's power to grant relief upon subsequent compliance.