Order Date – 06 June 2024

Parties: M/s Jetha Ram Mali Vs Commissioner of Central Goods, Service Tax And Central Excise

Facts –

• The Appellant, M/s Jetha Ram Mali, filed an appeal before the Commissioner (Appeals) wherein the appellant had deposited Rs. 84,590/- as pre-deposit for filing of appeal through DRC-03 dated 12.04.2023.
• The Commissioner (Appeals) without going into the merits of the case, dismissed the appeal of the appellant due to non-compliance of mandatory pre- deposit. The present appeal is against the impugned order.

Issue –

• Whether pre-deposit made through DRC-03 is permissible under Section 35F of Central Excise Act, 1944?

Order –

• The Tribunal observed that the Principal Bench of the Tribunal in Tina Rubber & Infrastructure Limited vs. Commissioner of Central Excise and Central Goods, Service Tax, Delhi South in Service Tax Defect Diary No. 51243 of 2023 dated January 22, 2024 had held that the payment made through DRC-03 is not permissible under Section 35F.
• In addition, the Tribunal in the case of Army Welfare Housing Organisation has observed that there is no provision of using DRC-03 for the purpose of pre-deposit.
• Hence it was held that the CBIC Circular dated 28.10.2022 specifically clarifies the pre-deposit payment method for cases pertaining to Central Excise and Finance Act, 1994. The deposit made by the appellant towards pre-deposit under Section 35 of Central Excise Act, 1944 by way of DRC-03 cannot be accepted.
• Appeal is dismissed.