Once the appeal is filed by paying pre-deposit amount of 7.5%

TlOL-193-CESTAT-MUM Kala Mines and Minerals vs. CC, CE & ST [2015]

Once the appeal is filed by paying pre-deposit amount of 7.5% of the tax demand in terms of section 35F of CEA, 1944 and appeal is pending before the Tribunal, there was no need for freezing the bank accounts.

FACTS:

The Appellant complied with the provisions of section 35F of the Central Excise Act, 1944 while filing appeal. DGCEI wrote a letter to the bankers of the Appellant to remit the amounts lying with the bank to the Government exchequer, in pursuance to which, the bankers froze the bank accounts.

HELD:

In our considered view and as also statutorily once mandatory deposit of 7.5% is made, there is no reason for recovery of any further amount from the appellant and the action of the Dy. Director, DGCEI seems to be beyond the scope of law.