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 Dear Professional Colleague,

Tribunal has no inherent power to put a condition for depositing an amount for adjudicating the case afresh

We are sharing with you an important judgement of the Hon’ble High Court, Andhra Pradesh, in the case of Maa Mahamaya Industries Ltd. Vs. Commissioner of Central Excise, Customs and Service Tax Visakhapatnam-I, Commissionerate [2014 (11) TMI 747 – Andhra Pradesh High Court] on following issue:


Whether the Tribunal has inherent power like Civil Court to put a condition for depositing an amount for adjudicating the case afresh?

Facts & background:

In the instant case, a Show Cause Notice was issued by the Ld. Commissioner to Maa Mahamaya Industries Ltd. (“the Appellant”) and the same was adjudicated against the Appellant. Being aggrieved, the Appellant preferred an appeal before the Hon’ble CESTAT.

The Hon’ble CESTAT after considering the facts and circumstances of the case found that the present appeal needed fresh hearing by the Ld. Commissioner. Accordingly the case was remanded back to the Ld. Commissioner with some specific directions, namely supply of materials and other things. Further, a direction was also given to the Appellant to deposit Rs. 5 crores as a condition for fresh adjudication.

Being aggrieved the Appellant preferred an appeal before the Hon’ble High Court of Andhra Pradesh and contended that unlike Civil Court, the Hon’ble Tribunal has no jurisdiction to put a condition of depositing Rs. 5 crores as a pre-condition for adjudicating the matter afresh by the Ld. Commissioner.

On the other hand, the Department submitted that the Hon’ble Tribunal direction to deposit was as a measure of security and hence the aforesaid Order was passed to meet the ends of justice.


The Hon’ble High Court of Andhra Pradesh held that the Tribunal is a creature of a Statue with specific powers mentioned in the Statute itself and there is no provision under the Statue enabling the Tribunal to ask for depositing Rs. 5 crores for adjudication and the same is without jurisdiction.

Accordingly the Hon’ble High Court directed the Ld. Commissioner to adjudicate the matter without any deposit and it was further clarified that in any event, logically question of deposit does not arise unless there is an adjudication to suffer with the liability of the Appellant.

Hope the information will assist you in your Professional endeavors. In case of any query/ information, please do not hesitate to write back to us.

Thanks & Best Regards.

Bimal Jain

FCA, FCS, LLB, B.Com (Hons)

Flat No. 34B, Ground Floor, Pocket - 1,
MayurVihar, Phase - I,

Delhi – 110091, India

Email: bimaljain@hotmail.com

Web: www.a2ztaxcorp.com

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this newsletter in the respective scenarios. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. No part of this document should be distributed or copied (except for personal, non-commercial use) without our written permission.


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Bimal Jain
Category Excise   Report

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