Legal principle

The pre-deposit under Section 129E is a mandatory condition for an appeal, and a person who does not pay it cannot use a writ petition to get the High Court to decide the merits instead.

Court decision

The Delhi High Court dismissed the writ petition on 16.09.2026 because an effective appeal remedy existed, without deciding the merits. The petitioner may take the matter to the competent appellate forum, including the Tribunal under Section 129A. All points, such as cross-examination, Section 108 statements, retraction, Section 138B, confiscability and the amount of penalty, were left open.

Facts

On 14.11.2014 the DRI stopped a container at ICD Tughlakabad, New Delhi, covered by Shipping Bill No. 5994448 dated 11.11.2014 declaring carpets for export. Inside, 142 logs of red sanders wood weighing about 4.43 MT were found hidden under carpets. More red sanders wood was seized from premises at Gannaur, Haryana. Sinder Pal was issued a show cause notice dated 11.05.2015 and, by order dated 26.03.2018, a penalty of Rs.3,00,00,000 was imposed on him under Section 114. His appeal to the Commissioner (Appeals) was rejected on 10.12.2020 because he did not make the 7.5% pre-deposit (an amount that must be paid before an appeal is heard) under Section 129E. He then filed a writ petition in the Delhi High Court.

Key provisions

• Section 129E, Customs Act, 1962 — Deposit of certain percentage of duty demanded or penalty imposed before filing appeal