Facts of the Case

M/S Madhyamik Shiksha Parishad, a statutory education board of the Government of Uttar Pradesh, had its appeal before the CESTAT, Allahabad Regional Bench, rejected solely for non-compliance with the mandatory pre-deposit requirement under Section 35F of the Central Excise Act, 1944, arising from an earlier order-in-appeal dated 12.01.2021 passed by the Commissioner (Appeals), CGST and Central Excise, Allahabad. The Parishad's further appeal to the High Court under Section 35-G of the Act was itself filed with a delay of 147 days.

Issues Involved

  1. Whether the delay of 147 days in filing the appeal should be condoned.
  2. Whether the Tribunal's dismissal for non-payment of mandatory pre-deposit should be set aside to allow the appeal to be heard on merits.

Petitioner's Arguments

  • Being a statutory Government of U.P. board, the appellant sought time to make good the pre-deposit and requested that the delay in filing be condoned.

Respondent's Arguments

  • The revenue's counsel fairly stated that if the appellant made the pre-deposit within one month, the department would have no objection to the Tribunal's order being set aside so the appeal could be heard on merits.

Court Order / Findings

  • The Court condoned the 147-day delay in filing the appeal, subject to payment of Rs.10,000 costs to the High Court Legal Services Committee by 15.06.2023.
  • In view of the revenue's concession, the Court disposed of the matter on the basis that if the appellant paid the cost and deposited the pre-deposit amount by 30.06.2023, the Tribunal's order dated 02.08.2022 would stand set aside and the appeal would revive before the Tribunal to be heard and decided on merits.

Important Clarification

No party's substantive tax liability was decided in this order; it is purely procedural, reviving a dismissed appeal conditional on payment of cost and mandatory pre-deposit. This is a Central Excise Act, 1944 matter (Section 35-G appeal), not a GST case, though the underlying tribunal order involved the Commissioner (Appeals), CGST and Central Excise.

Sections Involved

  • Central Excise Act, 1944 – Section 35-G (appeal to High Court) and Section 35-F (mandatory pre-deposit)

Decision – In Favour of

Petitioner (conditionally) – the Tribunal's dismissal was set aside subject to payment of costs and pre-deposit; the underlying excise dispute was not decided and remains to be heard by the Tribunal.

Case Details

Court: High Court of Judicature at Allahabad
Case Number: Central Excise Appeal Defective No. 8 of 2023
Coram: Justice Saumitra Dayal Singh and Justice Rajendra Kumar-IV
Date of Order: 25 May 2023

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